Range Trading
Range trading is a trading strategy that involves buying and selling a security within a predetermined price range. This strategy is used by traders who believe that the price of a security will remain within a certain range for a period of time. The goal of range trading is to capitalize on the price fluctuations within the range and make a profit. Range trading can be used in any market, including stocks, commodities, currencies, and derivatives.
History of Range Trading
Range trading has been around for centuries, with traders using it to capitalize on price fluctuations in the markets. In the early days of trading, traders would use charts and technical analysis to identify price ranges and then buy and sell within those ranges. As technology has advanced, range trading has become more sophisticated, with traders using computer algorithms to identify and capitalize on price ranges.
Comparison Table
| Strategy | Risk | Reward |
|---|---|---|
| Range Trading | Low | Moderate |
| Day Trading | High | High |
| Swing Trading | Moderate | High |
Summary
Range trading is a trading strategy that involves buying and selling a security within a predetermined price range. This strategy is used by traders who believe that the price of a security will remain within a certain range for a period of time. Range trading can be used in any market, including stocks, commodities, currencies, and derivatives. For more information about range trading, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Day Trading
- Swing Trading
- Technical Analysis
- Price Action Trading
- Momentum Trading
- Scalping
- Position Trading
- Trend Trading
- Contrarian Trading
- Arbitrage Trading
