Differences between scalping and pipsing.

There are constant discussions among traders - What is the difference between scalping and pipsing?

Some argue that pipsing is one of the types of scalping, others talk about the fundamental differences between these strategies.

In order to understand the essence of this issue, you need to compare their main components.

• Leverage - when scalping its average size is from 1:100 to 1:200, when pipsing from 1:200 to 1:500, depending on the preferences of the trader.

• Time frame - scalping is most often carried out on time frames of more than 5 minutes, pipsing is definitely on M1.

• Duration of transactions - in scalping, the duration of maintaining a position sometimes reaches up to an hour, pips rarely last more than a few minutes.

• Use of analysis - when pipsing, the use of market analysis is practically impossible, only in some cases you can catch certain patterns, scalping often allows you to use technical analysis indicators.

• The size of the profit is almost the same since when pipsing they use a larger leverage , and when scalping you can earn more points from one transaction, and the size of the commission paid differs significantly.

In fact, these two strategies are quite similar, but if scalping can still be classified as thoughtful trading, then pipsing already resembles gambling with a rather unpredictable result. In addition, most brokers simply do not take into account transactions lasting less than 5 minutes. Recommended brokers for scalping .

Moreover, due to the longer duration of transactions, even medium-term scalping can bring profit comparable to pipsing, while at the same time the risk of losing the deposit is incomparably less.