Maintaining active stop-loss orders is an essential task for scalpers. This is due to the fact that scalping strategies frequently carry higher risks than other types of trading strategies. Traders must use protective stop losses to protect their positions at all times. If you don't use hard stops to protect your positions, you could end up losing a lot of money. Furthermore, scalpers typically set their stop losses five pip increments below where they entered the market due to their large position sizes. The amount of leverage used is inextricably linked to larger positions. As a result, it is recommended that you use a lower leverage.
By doing so, traders reduce the amount of risk associated with a specific trade. Another important risk management strategy, in addition to stop-loss orders, is to limit market exposure. Limiting the amount of time a trader spends in the market to just a few minutes reduces the likelihood of being caught off guard by tumultuous market events.