What is scalping on forex

Posted: OZazello Date: 28.05.2017

Scalpingwhen used in reference to trading in securitiescommodities and foreign exchangemay refer to. Scalping is the shortest time frame in trading and it exploits small changes in currency prices. This procedure allows for profit even when the bid and ask don't move at all, as long as there are traders who are willing to take market prices.

what is scalping on forex

It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds. The role of a scalper is actually the role of market makers or specialists who are to maintain the liquidity and order flow of a product of a market. The profit for each transaction is based only on a few pips basis pointsso scalping is typically conducted when there are large amounts of capital and high leverage or there are currency pairs where the bid-offer spread is narrow.

what is scalping on forex

Whenever the spread is made one or more party must pay it paying the cost to receive some value on completing the transaction quickly and some party or parties will receive that money as profit. Scalping in this sense is the practice of purchasing a security for one's own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit upon the rise in the market price following the recommendation. Scalping is analogous to front runninga similar improper practice by broker-dealers.

Forex Scalping - A Dangerous Game

It is also similar to but differs from pumping and dumpingwhich does not involve a relationship of trust what is scalping on forex confidence between the fraudster and his or her victims. From Wikipedia, the free encyclopedia. This is the latest accepted revisionreviewed on 16 June This article is about trading in securities or commodities.

what is scalping on forex

For other uses, see Scalping anz investment options. Retrieved from " https: Wikipedia semi-protected pages Articles needing additional references from August All articles needing additional references Articles needing additional references from March Navigation menu Personal tools Not logged in Talk Contributions Create account Log in.

Views Read View source View history. Navigation Main page Contents Featured content Current events Random article Donate to Wikipedia Wikipedia store.

Interaction Help About Wikipedia Community portal Recent changes Contact page. Tools What links here Related changes Upload file Special pages Permanent link Page information Wikidata item Cite this page.

Forex Scalping | Forex Strategies & Systems Revealed

This page was last edited on 16 Juneat Text is available under the Creative Commons Attribution-ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy.

Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view.

This article needs additional or better citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.

Forex 1 minute scalping strategy explained

August Learn how and when to remove this template message. This section does not cite any sources. Please help improve this section by adding citations to reliable sources.

March Learn how and when to remove this template message.

inserted by FC2 system