Wednesday, September 26, 2012

What is Forex Scalping

Forex Scalping means quick trading. In this method traders change their positions just for a matter of seconds, to a full minute and similar time like that. It can be called as long scalping If you take your position more than minutes.

Main purpose of scalping is making small profits while taking very limited risk, You need to make quick open/close trading for this scalping mode.

You have to use big money for this movement. maybe you can use leverage, which forex companies can give you leverage from 20x to 400x. With forex leverage you can multiply your money. But risk will be also multiplied.

How this works:  For example you (scalper) opens a trading with 100 000 unit of EUR/USD account.  If each pip you earn you $10. Then 3 pip gives you 30$ . not too bad for 1 minute work. And suppose there is no risk for lost your money or risk is minimal than other scalping techniques.

You need to forex software for making this fast movement. And you will need good trader company that allows forex scalping.

Forex learn trading free,earn money online,work at home,


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Risk Warning

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.