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Micro trading, also known as micro-trading or micro-scalping, is a trading strategy that involves numerous small trades to capitalize on small price movements in financial markets. It is a short-term trading approach where traders aim to profit from the intraday fluctuations in prices.

In micro trading, traders typically focus on liquid markets, such as stocks, currencies (forex), or commodities, where there is sufficient trading volume and price volatility to execute multiple trades throughout the day. The goal is to generate small profits on each trade, which can accumulate significant gains over time.

Traders who engage in micro trading often rely on technical analysis techniques, such as chart patterns, indicators, and algorithms, to identify short-term price movements and make quick trading decisions. They may use high-frequency trading platforms or automated trading systems to execute trades rapidly and take advantage of even the smallest price differentials.

Micro trading requires traders to closely monitor the markets, as positions are typically held for only a few seconds, from a few minutes. Due to the high frequency of trades, transaction costs, such as commissions and slippage, can have a significant impact on profitability.

It's worth noting that micro trading is a highly active and speculative trading strategy that requires expertise, discipline, and risk management. It may not be suitable for all traders, especially beginners, as it demands quick decision-making and the ability to handle the psychological stress associated with rapid trading.

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