A limit order and scalping are not the same, but they can be related.
In order👇
Scalping is a trading strategy based on profiting from short-term price fluctuations. Scalpers aim to earn from small but frequent market movements by opening and closing trades within a very short time.
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A limit order is an order that sets the price at which a trader is willing to buy or sell an asset. For example, if you want to buy a token at a price of $93,841, you place a limit order at that price. When the market reaches this level, the order is executed automatically.
Let's move on👇
❗️❗️❗️Limit order in the context of scalping: Scalpers often use limit orders to set the price at which they want to buy or sell an asset in advance. For example, if the token price is currently $93,841, and the trader expects the price to drop slightly, they can set a limit order at $93,000. Once the price reaches this level, the order is triggered, and the trader buys the token.
2. Limit orders for selling: The same can be done when selling. If a trader expects the price to rise, they can set a limit order at a higher price. For example, if the token is priced at $93,841, the trader can set a limit order to sell at $94,500. If the price rises and reaches this point, the order will be executed automatically.
Thus, a limit order is a tool that can be useful in scalping for automatically executing trades at pre-set prices. However, it is important to remember that in scalping, traders often work with very short time intervals and small profits per trade, and limit orders can be used to set precise entry and exit levels.
I hope I explained it clearly… 🤔
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