forex trading scalping
In online Forex trading we refer to scalping to define an operation to close a position in a very tight time, a feature that makes this practice even more interesting and exclusive, especially if you compare it to normal Possible procedures with bank investment. We have seen that Forex can only be negotiated through the brokerage of a broker, or a brokerage company (in fact) that instead has the authorization to be able to act directly with purchases and sales of financial products. In this series of lessons we refer to Forex, but the practice of scalping is possible in all the specialties of online trading and is the daily bread of those who practice the daytrading, or trading on a daily basis.
1 Benefits of scalping in Forex
2 litigation for the use of scalping in Forex
3 Eye on costs
Benefits of scalping in Forex
Among the advantages of scalping is the possibility to exploit the moments of greater volatility of financial products, including currencies. These moments of frenzy are not random, but often respond to events, such as a statement by a member of the ECB (e.g. the President, currently Mario Dragoni), or the IMF (International Monetary Fund), the Fed (federal Reserve) and More. Considering the EUR/USD cross for example, events involving mainly the USA and Europe should be taken into account, in the GBP/USD ratio instead of Britain and so on. The advantage is to be able to act before scheduled events, from the outcomes Pronosticabili. Moreover, factor not of little importance, the possibility of closing a position shortly after time is an more weapon against possible movements in opposite directions to our prediction in order to protect our capital.
Controversy over the use of scalping in Forex
As you may well understand, the use of scalping in Forex is regulated in such a way as not to allow exaggeration in speculation. Speculation in itself is an entirely legal and normal practice, if made within the limits of the regulations. The high buy low resell is part of that myriad of fundamental pieces of which is composed capitalism and above all the Neo capitalism. In addition, if a broker allows you to do certain operations, the final liability is the broker itself. On the subject of this issue, namely the internal rules of the brokers, the so-called terms of service, we are dedicating an article. For now, you need to know that the trading software of the most important brokers are made in such a way that until you can click, the operation can be said feasible.
Watch the costs
As interesting and convenient scalping, take into account that for every operation you do (every position you open), the broker deduct a small amount, or the only cost that face for transactions. We remind you that the broker does not earn if you win or lose, but simply applies a small cost to the opening of a position. So in order to be profitable a scalping operation, must see a margin of gain that considers the costs of the operation, and not only the simple rise. The upside, that is, must also cover the cost of the operation. For this reason, the most volatile products are recommended (e.g. raw materials or currencies in times of greater frenzy).