Friday, April 20, 2012

What is Forex Scalping

Forex Scalping means quick trading. In this method traders change their positions just for a matter of seconds, to a full minute and similar time like that. It can be called as long scalping If you take your position more than minutes.

Main purpose of scalping is making small profits while taking very limited risk, You need to make quick open/close trading for this scalping mode.

You have to use big money for this movement. maybe you can use leverage, which forex companies can give you leverage from 20x to 400x. With forex leverage you can multiply your money. But risk will be also multiplied.

How this works:  For example you (scalper) opens a trading with 100 000 unit of EUR/USD account.  If each pip you earn you $10. Then 3 pip gives you 30$ . not too bad for 1 minute work. And suppose there is no risk for lost your money or risk is minimal than other scalping techniques.

You need to forex software for making this fast movement. And you will need good trader company that allows forex scalping.


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