Leverage for pipsing.
A trend doesn't always have a clearly defined direction; there are periods when the price moves horizontally for several days.
However, its fluctuations in one direction don't exceed 10 pips (with a four-digit quote). In this case, there are two options: change the trading asset or use scalping.
This strategy yields the best results during a flat period, as the exchange rate fluctuations follow a consistent pattern.
However, to profit from a 10-pip movement, you need a large capital base or high leverage.
For example, if you take the EUR/USD currency pair, a 1-pip price change will earn you $10 if you open a 1-lot trade.
How much money and what leverage is needed to trade one lot?
Here everything depends on what funds you have and what goal you set for yourself - a stable income or an increase in your deposit .
• The optimal option is a leverage of 1:100 and a deposit of $ 1,200 if you decide to trade the EUR / USD currency pair. In this case, the risk of losing your deposit is minimal, and you can earn 4-6% from one transaction.
• The maximum option - it is often used on cent accounts , a leverage of 1: 1000, in this case, you only need $ 120 to trade a volume of 1 lot.
In this case, you can get about 40-60% from one transaction, but you will be trading on the edge, since a good candle against the position will instantly destroy your deposit.
• Fantastic - some brokers offer their clients a leverage of 1: 2000, in theory it can also be used, but on an even more sluggish current trend and with a five-digit quote value.
Since it's technically difficult to set a stop loss when scalping, it's recommended to trade with less than your full deposit, meaning you should keep some funds in another account. This will give you the chance to continue trading if things go wrong.
It's worth noting that the one-lot volume is just an example and isn't mandatory. You can trade with a much larger or smaller volume, depending on your preferences and deposit size.
