Scalping on Forex (scalping).

There are a huge number of trading strategies on the Forex market, but any trader will tell you that scalping is the most profitable, as it allows you to turn a few thousand dollars into a million.

Scalping is a trading strategy that maximizes profitability through the use of high leverage. It is characterized by short trade durations and relatively high risk.

The essence of scalping in Forex is that a trader uses leverage to maximize trade volumes, significantly increasing the profit per pip.

For example , if you have a $100 deposit, opening a 0.01 lot trade will earn you only $0.10 per pip of price movement. By increasing the volume 50-fold to 0.5 lots, you can earn $5 per pip. This is quite a significant profit for a $100 deposit.

However, it's important to remember that all trend movements consist of fluctuations, which aren't always in the desired direction. These fluctuations can range from 2 pips or more, depending on the time frame. However, as the example shows, our deposit can withstand a movement of no more than 20 pips, so we should choose an appropriate time frame . In our case, it will be M1.

The profit per trade in this case will only be a few pips, but this is quite sufficient. After all, there can be dozens, and sometimes hundreds, of such transactions per day.

Types of scalping in Forex.

Pipsing is the riskiest and most profitable option, with leverage ranging from 1:500 to 1:1000, and trade durations from a few seconds to a minute. It's primarily used to build a deposit.

Relaxed scalping is trading on timeframes of 5 to 15 minutes. The leverage here is significantly lower than with the previous option, ranging from 1:200 to 1:500. This allows for slightly lower trading risk. This trading option is described in the article " The Best Scalping ."

Key points.

Like any trading method, this strategy has its key points:

1. The broker must allow this type of trading, with no restrictions on the duration of trades or their number per day.

2. The spread must be minimal and preferably floating; every pip affects the financial result; you can track its changes using the spread indicator .

3. Order execution must be fast and accurate ( Instant Execution ), with no slippage at all or only positive slippage.

4. A five-digit quote is also more convenient for short-term Forex trading.

Scalping on Forex will allow you to significantly increase your deposit in just a few days, but constantly trading with this strategy is extremely risky, so it is recommended to use it only when extremely short on funds.