Jamalun
12-06-2020, 09:50 PM
Every trader has at least once heard about aggressive intraday trading, when a lot of trades are made during the session. This style of trading is commonly called scalping.
Below you will learn what scalping is, how this method is traded, and what its advantages and risks are.
What is scalping in simple words
Scalping (from the English scalping ― cut the scalp or top) is a type of intraday speculative trading strategies based on opening a lot of short-term transactions in order to get a small profit on them (a few points of "pips"), summing up which, the expected percentage of profitability is achieved.
In simple words, scalping is trading within a day, with a lot of low-profit trades, to get a significant total income.
The word scalping comes from the English scalping – to cut the scalp, which means, in the context of the financial market, to take the top or, as some traders say, to skim the cream – this is the essence of this method of trading.
Scalping on Forex is often called pips, from the name of the points on the charts of currency pairs-pips.
Many people call scalping a trading strategy, but this is not entirely true – in fact, the tactic combines many trading strategies that have a common feature-quick opening and closing of transactions.
Among traders, scalping is usually referred to as highly profitable, but extremely complex, requiring a lot of discipline and experience in trading strategies. There are two conflicting points of view.
Below you will learn what scalping is, how this method is traded, and what its advantages and risks are.
What is scalping in simple words
Scalping (from the English scalping ― cut the scalp or top) is a type of intraday speculative trading strategies based on opening a lot of short-term transactions in order to get a small profit on them (a few points of "pips"), summing up which, the expected percentage of profitability is achieved.
In simple words, scalping is trading within a day, with a lot of low-profit trades, to get a significant total income.
The word scalping comes from the English scalping – to cut the scalp, which means, in the context of the financial market, to take the top or, as some traders say, to skim the cream – this is the essence of this method of trading.
Scalping on Forex is often called pips, from the name of the points on the charts of currency pairs-pips.
Many people call scalping a trading strategy, but this is not entirely true – in fact, the tactic combines many trading strategies that have a common feature-quick opening and closing of transactions.
Among traders, scalping is usually referred to as highly profitable, but extremely complex, requiring a lot of discipline and experience in trading strategies. There are two conflicting points of view.