Foreign exchange trading is all about making money out of the fluctuations in the values of the currencies you hold. While most profitable forex trading decisions are done by staying in the market long enough to see trends and to tack advantage of breakouts, there are those that are done short-term. One forex trading method that is popular for those who want to go for short-term small-yield forex trading is forex scalping. Scalping in the forex market is done by getting into a trade and then getting out of it within seconds. Traders scalping in the forex market often make several trades in a day hoping to get more pips out of their trades.
Scalping in the forex market can only be used in a high leverage. Only a small number of pips are targeted in each trade. About one to five pips would be just right. Day traders who want to see gains everyday and who are not patient enough to watch the longer-term charts do well in scalping in the forex market. This kind of short-term trading, to their mind, lessens their exposure to risks as they are able to quickly get out of bad trades and quickly realize small profits in good trades. The small pips in a large number of trades accumulate to a substantial amount in profits at the end of the day.
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