The best conditions for scalping.
Like most trading strategies, scalping on Forex requires certain trading conditions that
will significantly increase trading efficiency.
Better scalping conditions offer traders several advantages, completely free of charge. The key is knowing what to focus on when exploring this topic.
So, here's what makes scalping more effective:
• Floating spread – this issue is especially important if scalping , where every point of the spread is important.
With a floating spread, you can find moments when the commission is practically zero. This isn't just a theory, but a fact that has been proven in practice many times.
For example, you can set a stop loss at 5 points. You can't do this with four digits, since the standard limit is usually no closer than 10 points to the current price. However, with five digits, this is easy, since this indicator will be displayed as 50 points.
• Speed of execution – this is a crucial point, especially when trading using a five-digit quote. The price changes almost instantly, and the slightest delay in execution can result in an order being rejected. It's best to check this indicator in person, as almost all brokers claim their orders are executed instantly.
• Execution option – preferably precise, without established parameters for deviation from the stated price, that is, the order should be executed exactly at the quoted price, and not at the market price.
• Trading hours – depending on the trading instrument, for currency pairs containing the dollar or euro this is the American or European Forex trading sessions.
• Currency pair – having the smallest spread, these include EURUSD, USDJPY, GBPUSD, USDCHF and some other instruments, you can find out the spread size more accurately by analyzing Forex quotes.
• Broker for scalping - only brokers that allow scalping, otherwise you will not avoid financial sanctions.
Well, that's all you need to know to effectively scalp on Forex. I hope this knowledge will help you achieve your desired profit.
