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 longer than 5 minutes, while pipsing is definitely done on M1.

• Duration of transactions - in scalping, the duration of maintaining a position can sometimes reach up to an hour, pipsing rarely lasts more than a few minutes.

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

• Profit margin - is practically the same, since pipsing uses greater leverage , while scalping allows you to earn more points from a single transaction, and the size of the commission paid differs significantly.

In fact, these two strategies are quite similar, but while scalping can still be considered thoughtful trading, pipsing is reminiscent of gambling with a rather unpredictable outcome. 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 profits comparable to pipsing, while the risk of losing the deposit is incomparably lower.