Scalping - the short-term trading style
Once you become familiar with the field of trading in financial markets, you will hear soon about the concept of scalping. So let's clarify exactly what it means to do forex scalping.
Scalping is a trading style that means placing on the market numerous trading orders over short periods of time. The positions are kept open for a few minutes and the aims is to get only a few pips in the market.
In general, scalping is done using a large lever and derivatives are preferred.
In scalping, the risk assumed per order placed on the market is greater than the target profit, but the advantage is given by the number of closed orders in the profit, although the profit is small.
Trading scalping
Scalping trading is used as a very short-term strategy. Uses large volumes and very short position times from a few seconds to several minutes.
It is a type of algorithmic trading. Scalping is a popular trading style among traders. They appreciate the short exposure time to the market, as the risk is limited.
Category: Investing