What is scalping?

What is Scalping
What is Scalping

If you are new to trading, then you have probably heard about Scalping method. As per the BusinessDictionary, Scalping is a “Trading strategy in which goods or securities are bought and sold for small, short-term, profit during a trading session, rarely carrying a trading position to the next day.”

Traders, especially the beginners, are often looking for Forex trading strategies that will somehow extend the scope of the things they can do from their trading platform. It is also likely for the traders to look for new profitable ways to trade.

So, What is Scalping in Forex?

Scalping is just a type of intraday trading style. We know that Forex is the most liquid and volatile market in the world, hence while many experienced traders are trying to get a gain of some pips per their trade, there is a whole number of scalpers trying to squeeze every possible opportunity out of the small fluctuations in the foreign exchange quotes. In other words, scalping is simply taking advantage of the minor changes in the price of an asset, usually performed over a very short period of time.

It is quite a popular style, as it gives the traders a lot of profit opportunities within the same day. Usually scalping is carried out with high volumes, which is why many of these traders are not following the common 2% risk management rule, but are trading much higher volumes during their FX scalping sessions.

From the benefits of this method one can differentiate the ability for a trader to profit from rotational or slow markets. While it is true that the most liquid and volatile markets are the primary target of many traders, trading with the goal of capitalising on small market moves can prove to be profitable in stationary markets.

If you want to profit with this method in the autopilot then you may have a look at the article about top 10 Metatrader 4 expert advisors.