Understanding What is Scalping in Forex Trading

Understanding What is Scalping in Forex tradingForex scalping or you can called it a quick trading. It is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that, actually using high leverage.

Why is using scalping method?

Because this method making small profit whiles exposing a trading account to a very limited risk, which is due to a quick open/close trading mode.

How to do scalping?

A scalper open trading position of 100.000 units of EUR/USD. For each pip he will earn $10. And then he closes his order only with 3 pips profit, it is up to $30. It is not bad for a minutes work with this method, it is make big opportunity that trader always win, so it will make broker take some losses.therefore brokers would not agree to scalper’s trading style and the most of them will ask you to change your trading style or find other broker.

But if you really want to make a trade with scalper’s trading style, make it as conjunction with your overall trading position, not as main method of trading.Advance forex always see many options to make a trade, like using risk management and extreme caution.It is depend on your experience and your ability.

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