Forex Scalping
Forex scalping is a trading strategy used by forex traders to buy or sell a currency pair and then hold it for a short period of time in an attempt to make a profit. The trader hopes to make a small profit from each trade by taking advantage of small price movements in highly liquid currency pairs. Scalping is a trading style that is based on very small profits from many trades, rather than large profits from a few trades.
History of Forex Scalping
Forex scalping has been around for many years, but it has become increasingly popular in recent years due to the availability of high-speed internet connections and the development of sophisticated trading platforms. Scalping is a trading style that is based on taking advantage of small price movements in highly liquid currency pairs. Traders who use this strategy typically open and close trades within minutes or even seconds, and they often use technical indicators to identify potential trading opportunities.
Comparison Table
| Strategy | Timeframe | Risk/Reward |
|---|---|---|
| Scalping | Minutes/Seconds | Low/Low |
| Day Trading | Hours | Medium/Medium |
| Swing Trading | Days/Weeks | High/High |
Summary
Forex scalping is a trading strategy used by forex traders to buy or sell a currency pair and then hold it for a short period of time in an attempt to make a profit. The trader hopes to make a small profit from each trade by taking advantage of small price movements in highly liquid currency pairs. Scalping is a trading style that is based on very small profits from many trades, rather than large profits from a few trades. For more information on forex scalping, you can visit websites such as Investopedia, BabyPips, and ForexFactory.
See Also
- Day Trading
- Swing Trading
- Technical Analysis
- Price Action Trading
- Trend Trading
- Position Trading
- Momentum Trading
- Range Trading
- Fundamental Analysis
- Currency Trading
