Types of scalping

In practice, there are several types of scalping, which sometimes misleads some traders who decide to choose this trading strategy.

The division occurs depending on the ratio of trading volumes to the size of the trader’s deposit and the duration of the transactions. The amount of profit received also differs.

Pipsovka is the riskiest and at the same time the most profitable type of scalping; trading during pipsovka is carried out on the M1 - minute time period. The duration of maintaining a position rarely exceeds several minutes.

The size of the profit at which the position is closed is only a few points (pips), but due to the use of simply huge leverage (1:500, 1:1000), even 1 point has quite a lot of weight.

For example, if a transaction of 0.5 lots is opened with a deposit of $100, then the approximate price of a point is $5, and just 2 points of profit will already amount to 10% of the deposit amount.

Of course, there is also the opposite effect; you can get a drawdown or lose your deposit when using pipsovka as quickly as you can earn money.

Medium-term scalping is a less dynamic type of trading, trading is already carried out on M5, the transaction can last 5-10 minutes, and the number of points received will increase accordingly.

But since the amount of noise is already increasing in this time period, the ratio of depot sizes to transaction volumes is no longer so large and averages 1:200, that is, with the same depot of $100 from 1 point, earnings will be $2.

Conservative scalping - when using it, a fifteen-minute time frame is already selected, the duration of the transaction can increase to half an hour. And the profit sometimes reaches 20-30 points.

The advantages of this type of scalping are obvious - less risk due to the use of leverage of 1:100 - 1:200, absence of sanctions from most brokers, less psychological stress when trading.

But at the same time, the profit is no longer as impressive as when pipsing.

It is scalping that allows you to experience all the benefits of using leverage, and which type of leverage to choose depends on your character and risk appetite.