Forex Scalping

Forex Scalping means quick trading. In this method traders change their positions just for a matter of seconds, to a full minute and similar time like that. It can be called as long scalping. If you take your position more than minutes.

Main purpose of scalping is making small profits while taking very limited risk, You need to make quick open/close trading for this scalping mode.

You have to use big money for this movement. maybe you can use leverage, which Forex companies can give you leverage from 20x to 400x. With Forex leverage you can multiply your money. But risk will be also multiplied.

The essence of scalping is in the following. A trader opens a position in the forex market, wait for a few seconds or minutes, to gain several pips (hence the name of the strategy), then closes the position. Capturing small price swings, for example, within an hour, you can dramatically improve the profitability of short-term transactions in the Forex market. The trader can make such transactions many several hundreds times during a day.

However scalping is not popular among professional traders. You may manage to gain a good sum, but sooner or later you  fail to receive a constant income over long periods of time.

For example you (scalper) opens a trading with 100 000 unit of EUR/USD account.  If each pip you earn you $10. Then 3 pip gives you 30$ . not too bad for 1 minute work. And suppose there is no risk for lost your money or risk is minimal than other scalping techniques.

 

One of the difficulties of scalping is a great tension with trading. The thing is that scalping requires a permanent presence of the trader in the Forex market, with stressful situations occur repeatedly throughout the day, which reduces the number of rational decision-making while trading.