Scalping
in the forex market involves trading currencies based on a set of
real-time analysis. The purpose of scalping is to make a profit by
buying or selling currencies and holding the position for a very short
time and closing it for a small profit. Many trades are placed
throughout the trading day and the system that is used by these traders
is usually based on a set of signals derived from technical analysis
charting tools, and is made up of a multitude of signals, that create a
buy or sell decision when they point in the same direction. A forex
scalper looks for a large number of trades for a small profit each time.
Forex Scalping System
A
forex scalping system can be either manual, where the trader looks for
signals and interprets whether to buy or sell; or automated, where the
trader "teaches" the software what signals to look for and how to
interpret them. The timely nature of technical analysis makes real-time
charts the tool of choice for forex scalpers.
Forex Scalper
The forex market is large and liquid;
it is thought that technical analysis is a viable strategy for trading
in this market. It can also be assumed that scalping might be a viable
strategy for the retail forex trader. It is important to note though,
that the forex scalper usually requires a larger deposit, to be able to
handle the amount leverage they must take on to make the short and small trades worthwhile.
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