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Brokers For Scalping Strategy

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Many Forex brokers offer their traders a feature called scalping. Scalping is a trading style that specializes in profiting off small price changes, generally after a trade is executed and becomes profitable. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains the trader worked to obtain. In short, scalping is a rapid trading style where trader looks for small profits, between 2-5 pips by opening and closing trades that last less than a minute over and over again.

The best scalping Forex brokers offer an opportunity to hold positions for mere seconds and use tight stop-loss orders on them. Some brokers allow scalping in general, but impose some restrictions on scalpers in form of additional commissions, spreads or trade number limits. A list below will show you some brokers allowing scalping for the clients.


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Additional FAQ

A scalper can open and close 30 positions in a day. Say the broker charges a spread of 3 pips for every position, the profit average is 5 pips, the loss average is 3 pips, and the scalper makes 20 winning trades and 10 losing trades. The total profit and loss without the spread are:

(20 x 5) - (10 x 3) = 70 pips

If the spread is charged:

((20 x 5) - (10 x 3)) - (30 x 3) = -20 pips

The result is disappointing, right? Although they have made twenty profitable trades, the total profit/loss turns to minus once the spread is applied.

Continue Reading at The Secrets of Successful Scalping Strategy

Scalping is a trading technique that involves opening and closing positions quickly, usually within minutes. The goal is to gain a small profit multiple times a day.

Continue Reading at Scalping or Swing Trading, Which One to Choose?

Yes, they may need to. Scalpers often feel dissatisfied with the profit they got as they collect only small profits. They think it is not worth all the efforts they make. To overcome this, a scalper can use leverage for their advantage. The higher their leverage, the lower their margins need to be. It means they can use the bigger lot sizes to increase their profit targets.

However, many experienced scalpers recommend beginners to use small leverage in the first three months of trading until they find a suitable and tested trading method.

Continue Reading at The Secrets of Successful Scalping Strategy

Scalping could be an enjoyable experience, but it could also make you tired and stressed. To avoid that, make a daily target and don't be tempted to trade more than that. When you experience loss, don't think to take revenge right then and there; there's still tomorrow.

If the market moves in a different direction than the one you've predicted, close your position quickly. Remember than not all deals have to make profits.

Continue Reading at Forex Scalping Strategy for Beginners