Hedging, Scalping, News Trading

Modified on: 6th December 2023



Can I use the following techniques: hedging, scalping, or trade news?

Hedging within TraderLocker is a strategy used to protect one’s position on the market from an adverse movement. It is typically a form of short-term protection when a trader is concerned about news or an event triggering volatility in markets.

Scalping is a trading style used by traders to buy or sell an instrument and then hold it for a short period of time in an attempt to make a profit. A scalper looks to make a large number of trades, taking advantage of the small price movements which are common throughout the day.

News Trading is the technique of making a profit by trading financial instruments (stock, currency, etc.) just in time, and in accordance with the occurrence of some events. Economic news reports often spur strong short-term moves in the markets, which may create trading opportunities for traders. For example announcements about corporate profits, a change in management, rumors of a merger, any events that can cause a company’s share price to move wildly up or down.

You are free to hedge, scalp, and trade during news events.
 


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