scalping (literally "scalping") is a particular trading methodology in vogue on almost all types of financial instruments offered by the market. Scalping, not to be confused with day trading, allows the user to earn on small variations in the price of the instrument.
The scalping technique is one of the most popular strategies among traders who want to make money in Forex, but without taking great risks. The scalper is a trader who carries out many trades every day, trading within a few minutes and in some cases even a few seconds.
The use of scalping presupposes low commissions of trading for those who use it, since this method allows you to earn on very small price variations that are generated in a very limited time frame. A scalper can also carry out more than 200 operations per day if the opportunities to earn arise.
Scalping is widely used by "algotraders", i.e. those market operators who carry out operations through the use of algorithms who enter entry and exit orders from the market when a signal pre-established by the algotrader occurs.
For the algorithms it is possible to use platforms that allow their writing and setting, while those who operate manually using scalping often resort to the use of patterns and technical indicators on very limited timeframes (5-15 minutes).
The Forex market is one of the best to apply scalping techniques, since it is open 24 hours a day, has large liquidities and allows you to trade with low spreads. The large number of Forex traders and placements identify this market as the best place to scalp, achieving good results.
The scalping technique is quite complex and is strongly discouraged for traders who have just started moving on this terrain.
To find out more about this trading technique, we advise you to read Scalping in forex: what is it? Complete guide between techniques and risks.
