Scalping is an investment strategy supported a really short term operation by opening buy or sell positions and shutting them during a very short time, for instance during a jiffy or maybe a couple of seconds.
While there’s no exact deadline that defines when it involves a scalping trade, to urge a pity a trading position that’s greater than around 10 minutes is usually not considered. like scalping, but more like daytrading.
Scalping is an increasingly popular investment technique, because it offers the trader (in this case called “scalping”) several advantages over other short, medium or future strategies:
Avoid the “overnight” risk (and the corresponding evening premium)
It is possible to require advantage of the tiny movements that occur more frequently throughout the day,
Scalping is allowed with automatic trading systems using Expert Advisors (EAs).
Scalping features a number of benefits , but it also forces the trader to free all his attention: the operations are in no time . it’s usually traded with one-minute charts (and even ticks) and on financial assets that have some volatility. Movements within the markets are minimal, the scalper tries to realize a couple of points within the market, taking advantage of small fluctuations. it’s a method of trading that needs maximum focus and emotional control. The strategy to be followed plays an exceptional role and it must be executed with discipline.
Normally, scalpers usually operate the primary few hours of the trading session (be it European, American or Asian) because you’ve got to be constantly ahead of the screens. Staying longer can cause over-operation which might decrease attention if necessary.
Scalping is within the grasp of any trader, although working during this style depends on individual personality. To scalp, all you would like to try to to is open an account with a web broker that gives you rock bottom possible spreads. additionally , it must be a broker who accepts this sort of operation (scalping isn’t allowed by some brokers, mainly those of the Market Maker type).
After testing and analyzing many online brokers, those you’ll see within the table above are those we concede to be the simplest brokers for scalping.