Plus d'informations en temps réel. It will have a higher chance for success with a scalping-friendly broker.
Dernières stratégies de trading
This article is part of our guide on how to use scalping techniques to trade forex. As important as basic concepts like leverage and spreads are for forex scalpers, they are still secondary subjects in comparison to issues related to the broker, his attitude and preferences.
Quite simply, the broker is the most important variable determining the possibility, and profitability of a scalping strategy for any trader. A scalper has control over his strategies, stop loss, or take profit orders, as well as his time frame for trading, but he has no say in matters such as server stability, spreads, and the attitude of the broker to scalping. There are hundreds of brokers operating in the retail forex market today; naturally, each has a technical capability, and business model suitable to a different trader profile.
These differences are immaterial to most long term traders, for swing traders they are meaningful but not that significant, but for day traders and scalpers they are the distinction between profit and loss.
At the very basic level, the spread is a tax paid on profits and losses to the broker for his services, but the relationship goes a lot deeper than that. Although the cost of the spread is still an important variable, a successful trading style can easily justify the relatively small fees paid to the broker.
The situation is quite different for the scalper however. Since the scalper will open and close tens of positions in a short period of time, the cost of his trades will be a very significant item on his balance sheet. Suppose that a scalper opens and liquidates 30 positions on a day in the EURUSD pair, for which the spread is commonly 3 pips.
Which is a significant gain. A nasty surprise awaits our hypothetical trader in his account. The number of his profitable trades were twice the number of his losing ones, and his average loss was about half his average gain. And in spite of that remarkable track record, his scalping activity gained him a net loss. To break even, he would need an average net profit of 9 pips per trade, all else remaining the same. The 5 pips per win, and 3 pips per loss the same scenario which was examined in the beginning with a one-pip spread would bring us an outcome of.
Why is there such a large discrepancy in our results? And that is the problem. A scalper must scrutinize the account packages of different brokers thoroughly before deciding to become a client of one of them. What is a scalping policy? Although the majority of well-established firms with a history and a significant client base have an official policy of allowing scalpers freedom with their decisions, some brokers quite simply refuse to allow scalping techniques for clients.
Others process client orders slowly, and make scalping an unprofitable endeavor. What is the reason? Since forex brokers are liable to liquidity provider banks for the profits or losses of their clients, they would have faced periodic crises of liquidity and even bankruptcy. In order to prevent such a situation from arising, brokers net-out the positions of clients by trading against them.
That is, as a client opens a long position, the broker takes a short position, and vice versa. Well, not so much. And the small remaining net position the net long short or position that remains after the broker has netted out client orders against each other , is usually a losing position which can be counter-traded by the broker safely, because it is a well-established fact that the overwhelming majority of forex traders lose money.
You simply bid the price and sell the ask price. Eventually, scalping — if it worked — rewards you with the difference between the amounts of bid, respectively ask value.
So when scalping, you profit even in those cases, when there is no movement either for the bid, or for the ask. If you want to scalp, though, you must be provided with great and trustworthy access to the market makers with a platform that allows for very fast buying or selling or in short, better look for the option of the automatic executions of your transactions.
There are four main factors that put an affection on your scalping activity in Forex trading. Find out more about them now and make sure you consider each of them, when you make trades thanks to your scalping plan:. There are some rules and tips experts in Forex usually mention, when teach someone or talks over the scalping problem. Here are most of them:.
Do not even hesitate to try scalping, too! It is a great way to improve your Forex experience and to bring some more color and charm in it. Every trader needs a strategy and even if it s a common thing such a scalping, it is better than any other move you can do called by luck or sense of intuition.
Good luck with your Forex scalping, guys! Tell us how much you have earned thanks to your first scalping steps! We would be happy to know and be happy for you.
What is scalping and how does it work? What can affect your scalping strategy? Find out more about them now and make sure you consider each of them, when you make trades thanks to your scalping plan: