Brokers For Scalping Strategy
Many Forex brokers offer their traders a feature called scalping. Scalping is a trading style that specializes in profiting off small price changes, generally after a trade is executed and becomes profitable. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains the trader worked to obtain. In short, scalping is a rapid trading style where trader looks for small profits, between 2-5 pips by opening and closing trades that last less than a minute over and over again.
The best scalping Forex brokers offer an opportunity to hold positions for mere seconds and use tight stop-loss orders on them. Some brokers allow scalping in general, but impose some restrictions on scalpers in form of additional commissions, spreads or trade number limits. A list below will show you some brokers allowing scalping for the clients.
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Why should scalpers pay attention to their lot size?
Firstly, a scalper must be consistent in calculating the lot size since placing different lot sizes for every open position is very risky.
To be successful, a scalper needs to be skillful in taking advantage of the current price movement and paying attention to the leverage risk. Although the profits collected are not big, a scalper needs accuracy when aiming for profitability in every trade.
Continue Reading at The Secrets of Successful Scalping Strategy
What are the characteristics of scalping?
- One of the fast trading strategies applied by active traders.
- Scalping includes exploiting many gaps in price caused by the spread of bid/ask and order flow.
- Commonly works by making spreads, or in other words, buying on the bid price and selling on ask price to get the spread between two price points.
- Scalpers try to hold their position in a short tempo, as well as reduce the risk related to that strategy.
- A scalper doesn't move with big volumes, but they try to take chances from small movements in a small volume.
- Because the benefit per transaction is small, scalpers prefer to trade in a more liquid market.
- Unlike swing traders, scalpers like a stable market that's not easily influenced by sudden price movement. That is in order to get more spreads from the bid/ask price.
- Scalpers are also required to focus on factors such as lot size, price fluctuations, leverage, and familiarize themselves with any broker terms that could potentially impose restrictions on their scalping activities.
Continue Reading at Four Common Active Trading Styles
How to setup a scalping strategy with Moving Average?
You can use 34 EMA as part of a breakout trading strategy, which is suitable for scalping because it can point the direction of the trend. If you combine it with trend lines, you are going to be able to enter trades based on counter-trend opportunities.
For the time frame, you can choose between 1-minute, 5-minute, or 15-minute chart. Major or cross currency pairs that involve EUR, USD, GBP, and JPY are recommended.
Continue Reading at Forex Moving Average Strategy for Scalping
How to plan an exit scalping strategy with volume indicator?
We can target 10-20 pips profit and 5-8 pips loss. The following picture explains the scenario of opening a long position around the upper range with a 12-pip profit target and a 5-pip stop loss level.
Continue Reading at Easy Scalping with Volume and Price Action Analysis
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