When Is Hedging Considered Scalping?

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Scalping involves swiftly opening and closing trades to profit from small price movements. Similarly, opening an opposite position with the same volume shortly after the first can be considered scalping. For instance, opening a buy position and then a sell position of equal volume within a few seconds or minutes effectively closes the initial trade.

When hedging within a single account, it’s advisable to wait for at least 6 minutes before opening an opposite position. Opening the second trade in less than 6 minutes is viewed as scalping, as it results in closing the first trade within that short timeframe.

In summary, to avoid your hedging strategy being classified as scalping, ensure there’s a minimum 6-minute interval between opening opposing positions.

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When Is Hedging Considered Scalping?

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