Rating Forex brokers for scalping
Scalping is a type of trading strategy in forex trading when a trader makes a profit from short-term transactions at the time of the impulse price movement, as it were, "removing the scalp," or "cutting" only the uppermost part of the total changes in quotes. This type of trading requires certain conditions and is not supported by all brokers. On this page is the rating companies dealing suitable for scalping.
On the Forex market is used scalping three main options:
- Using the depth of market, when analyzing the market depth is determined by the time of the supply and demand imbalance. It is known that in this case there is a sharp change in the trading instrument quote in response to that can make big profits in a short time;
- Trading on the external momenta, where a trader watches and constantly analyzes the behavior of certain financial instruments to predict sudden changes in others. For example, if you change the prices for futures, after that can change the course of the commodity currencies;
- The combination of the first two methods for the application of technology, "hybrid" scalping.
Naturally, the trade in such dynamic methods, when the duration of a single transaction can range from a few seconds or minutes to half an hour, and the extent of the risks and objectives are minimal, requires compliance with certain criteria broker:
- Access to ECN accounts, ie providing liquidity not only at the expense of transactions between their clients and providing them with the opportunity to trade with large banks, funds and companies through its network of data transmission;
- Providing minimum spreads and fast execution of orders, as the profit skalpingovyh transactions may be only a few points;
- No restrictions on the duration of transactions or an outright ban on the short-term trading that some brokers may simply be unprofitable.
If a trader uses Scalping strategy for trading in the Forex market, it must be understood that this profitable and modern technology requires a very careful approach to the choice of broker. But any strategy, market success or failure depends primarily on its own knowledge and experience, and not from the reseller.