Why so much on Forex Scalping

Making the foreign exchange market scalping is a tactic that most traders try, sooner or later. This mode of operation leads to small gains, typically up to a maximum of 3 times the spread, in a short period of time, which could be several minutes or less. It is often seen as a risky strategy. Other times it is described as one of the strategies by which more difficult to earn money. But is it true?

One problem with scalping is that many brokers do not like, for two reasons. The first is that according to their business model may not be able to cover the position on the market before the scalpers close the transaction, leaving the broker with a loss. The second reason is that many traders in the past have developed strategies for scalping within the spread, which prevent the broker to earn the full amount of the spread the same on every single transaction.

One of the reasons why a broker can close the accounts of traders scalping is when they do, especially if you are making a profit. So, first thing, be sure that your broker will allow you to scalping. Otherwise, you may need to find a new broker with which to operate. In addition, other problems are inherent to the characteristics of short-term scalping.

The scalping strategy is attractive to novice traders, because of the speed with which transactions are made. Most novice forex are anxious if they leave a position open for an extended period. I do not usually like to leave a position open for more than a few minutes or even overnight. They feel they have more control on the market if you close the positions very quickly. Instead, you must make decisions very quickly, but do not sit all day in front of the computer to control them.

Another reason why scalping is attractive to traders is the ability to make instant profits. Attention to the risks, however, given that the scalper uses leverage to the maximum, and this is risky.

Posted in: Forex