Sweeping refers to the process of automatically closing out losing positions in order to limit losses. This is typically done by setting stop-loss orders on open positions. When the market moves against a position, the stop-loss order is triggered, and the position is closed out at the specified price.Sweeping can be done manually by a trader, but it can also be done automatically by a trading platform or software. This is common practice among traders and investors to minimize the loss.It can also refer to the practice of closing out of a winning position before it reaches its target profit level, in order to lock in the profit. This is typically done by setting a take-profit order on an open position. When the market moves in favor of a position, the take-profit order is triggered, and the position is closed out at the specified price.Overall, Sweeping is an important risk management technique used by traders to limit their exposure to losses and protect their capital.
