Scalping is a strategy based on the principle of quickly opening and closing positions on 1-5 minute charts to make a profit covering the size of the spread.
A characteristic feature of Scalping is a large number of transactions. For one day, a trader can carry out from 30 to 1000 deals. In most cases, when Scalping, the charts M1 (1 minute) and M5 (5 minutes) are used.
Scalping trading strategies are viral among professional traders because they help to limit the transaction in time with limited risk.
A forex scalper wants to get an average of no more than ten pips in the Forex market and take a maximum risk of 20 pips to generate trading income using the scalping method.
Now that you have understood the Scalping concept, it is essential to mention that Scalping goes well with high leverage brokers.
Here's why:
As part of Scalping, deals are opened with tremendous leverage of 1:1000 or even 1:3000. The spread is low, and the goal is to profit from a small number of points. Stop losses are usually set very close since the risk is high.
Using Scalping with high leverage, traders can earn significant profits multiple times in a day.
Trading with high leverage can be a risky business if you are starting. So, we advise you to take special care.
Polish your trading skills with the list of our chosen brokers for scalping with high leverage:
More interesting articles:
• Best Forex Brokers in South Africa
• Best ECN Forex Brokers With High Leverage
• Best Stock Brokers with High Leverage
Disclaimer: CNIE.ORG is not affiliated with any of the companies presented on this website. We are an independent website and are not liable for any potential loss that you may incur by trading with any of the mentioned brokers. This website is not meant for residents and citizens of the United States or any other country where forex trading is illegal.
Risk Warning: Trading in the forex market using Contracts For Difference, Options, Spread Betting and any other derivative trading instruments implies the risk of losing your entire investment. Derivative instruments are complex financial instruments that may not be adequate for everyone. Anyone who decides to trade using derivative instruments does so at his/her own risk and has full responsibility for the potential losses. The general advice is to never trade with money you cannot afford to lose.
