ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Scalpers like to try and scalp between five and 10 pips from each trade they make and to repeat this process over and over throughout the day. Pip is short for “percentage in point” and is the smallest exchange price movement a currency pair can take.

Detailed explanation-2: -What is the 10 Pips a Day Forex Strategy? The idea behind the strategy is to aim for quick wins every day. As the name implies, the goal is to make a profit of 10 pips each day. This sounds simple enough, and in theory it should be.

Detailed explanation-3: -Traders who use this style of trading are known as scalpers, and they can place 10 to 100+ trades in one day in order to make even tiniest profit. Scalping attracts traders because it exposes them to less risk and offers greater number of trading opportunities.

Detailed explanation-4: -Scalping is a day trading technique where an investor buys and sells an individual stock multiple times throughout the same day. The goal of a scalper is not to make an enormous profit with each individual trade they make, but rather to make a small profit over many little trades.

Detailed explanation-5: -In scalping, a 3:1 risk to reward ratio is common (although, lower risk/reward is always more favorable). This may sound backwards because it means risking $0.60 on a trade to make a $0.20 reward.