Scalping when it comes to Forex trading is something people do with the motivation of turning a profit right away. They buy and sell small deal throughout the day so that they can gain profit each time they do it. A lot of traders do either manual or an automatic system that lets them know what deals are available for them to trade. There are various types currencies that are used for scalping, but there are a few that are used the most frequently.
- The process of scalping involves buying and trading different currencies in the market.
- There are many exchange rate pairs, but there are some that are more major than others.
- A trade can automatically be triggered when an exchange rate changes, and you can make a profit.
“For example, if a U.S. trader initiated a buy position of euros at the euro-to-U.S. dollar exchange rate of $1.1050 and later sold the position at a rate of $1.1150, the profit would equal 0.0100 or 100 pips, which is approximately 1%.”