Forex scalping is a strategy used in Forex trading platform where a trader buys stocks and keep them for some time, hoping to make small profits by making small trades in a short period of time. The stocks can be kept for a minute or five minutes. In short, a scalper seeks to collect a lot small profits while position traders seek to collect massive profits.

Scalping strategy can be applied manually or automatically.  Manual scalping forces the trader to sit in front of the computer to monitor signals and executing trades. In automated scalping the trader creates a computer program that can monitor signals and interpret them. The automated scalper is often referred to a Forex Scalping Expert Advisor. The good thing about scalping robot ea is that the trader does not have to monitor the market the whole day.  The scalping robot ea will do this on his behalf and trade as it was told to.

There are three main benefits of scalping, which are:

·         Small trades can be made more frequently than large ones. Even if there isn’t much activity in the market, the scalping strategy can take advantage of the small movements and make profit.

·         Small movements are easily obtainable.  In a steady market bigger movements can be difficult.  For instance, it is easy for currencies make 10 cents movements than $2 movements.

·         Small trades decrease exposure to risks. Because the scalper will enter the market briefly, chances of running into volatile events are slim.

·         Scalpers need a single positive signal to enter the market while position traders need a lot of time to prepare and make market analysis.

 Two Scalping Styles

·         Primary Style-The scalper using this style will use the one-minute time frame to make five to hundreds of trades. Instant execution of trades is crucial; hence a Forex scalping ea can be more beneficial.

·         Supplementary Style-Scalping can be used supplementary to other trading time frames.  Most traders tend to scalp only when the market does not have longer frame trends. Traders will then opt to exploit the small movements in the market.

The beneficial thing about using scalping is that you can make many trades at a short space of time with lesser risks. Forex Scalping is compared to picking a lot of loose change. Scalping can be profitable particularly when the primary style is applied. If you choose to go for automated scalping, ensure that you get the best scalping ea to avoid costly interruptions.

Forex Scalping Robots