The term “Forex Scalping” is certainly not unknown to you. Indeed, many traders use this technique that is supposed to enable you to multiply your profits. But how does this technique function and is it really reliable? This is what we will cover in this article.
Firstly, it is important to specify that the Forex scalping technique is best reserved for experienced traders. It is necessary to understand and be highly experienced in the foreign exchange market to reap the benefits. It is undoubtedly for this reason that it is not used by the majority of investors.
In addition, if you tend to be prone to stress, it is better to avoid this strategy which requires that you can stay both concentrated and very calm. So, you must be certain that you can curtail your emotions and be in a calm place where you are not likely to be disturbed.
You will also need to fast when placing your orders as Forex Scalping is effective only if the latter are carried out within a few seconds.
If you think you have these attributes, then you will be able to accomplish many small profits without the risk of losing large amounts. The risks are limited here by the speed at which you carry out your transactions.
Unfortunately, the Scalping strategy also requires having large investment funds. However, on the majority of platforms you can use the leverage effect which allows you to reach it with less expense. However, do not begin with a leverage effect that is too high. Choose a low leverage that you can increase gradually.
Let us now see study how Forex Scalping actually works. First of all, open a position on a given currency pair of at least 100,000 units. In a few minutes, you can gain a small amount of money if you close your position quickly, even if the trend continues to move in your direction. In this way, you will no doubt pocket a profit even if it could have been higher had you waited longer. The objective of scalping is not to gain a large amount but to multiply the profits while leaning towards zero risk.
To make a success of such a skill, it is however necessary to trade Forex on a very volatile market. Therefore, be sure to carefully select the currency pairs to ensure you have a good foresight and knowledge of their trends.
Lastly, select carefully the broker with which you will carry out your transactions. Some do not authorise the closing of a position of less than a few minutes, which is sometimes too long to correctly apply a scalping strategy. Therefore gather all the information necessary before you start by contacting the customer service of the broker that interests you. You will however find platforms which play the game by offering accounts especially designed for Forex scalping.
