Scalping Strategy

Participants in exchange trading whose operations are accompanied by concepts such as a lot, risky, and often are called traders. They can choose different trading strategies.

October 30, 2024Last Updated: November 6, 2024

92 5 minutes read

What is Scalping?
Where To Use The Scalping Strategy?
Scalping Strategy For Cryptocurrency

Day trading is one strategy limited by a time frame. Namely, the operation must be completed within the day. All positions are opened and closed during the trading session. Among degraders, some make a considerable number of transactions with minor changes in quotes. Such traders are called scalpers.

The scalping strategy stands out as a unique type of trading, where a market participant engages in numerous short-term transactions on the exchange within a single trading day. The key feature is the minimal change in the price of an asset, making it a high-frequency trading method. These transactions can last from several seconds to several minutes, and all positions are closed within a day.

A scalper is a trader who enters into such trades. It earns income from the stock exchange’s small and frequent price fluctuations. Most often, scalpers play for growth; they buy an asset, for example, for 100 Indian rupees and sell it for 101 Indian rupees. However, the number and scale of operations allow traders to potentially receive a significant income even in the face of a low jump in value, making scalping a strategy full of potential.

Scalping is a type of trading, but the difference is in the timing of operations — with scalping, all transactions are concluded within one day. Options scalping strategy is a high-risk trading. However, the opportunities that it provides to its users are very tempting. Therefore, many traders use this strategy to make big profits on the stock exchange.

What is Scalping?

Let’s take a closer look at what a scalping trading strategy is. This concept means a relatively simple trading strategy that can be applied on different exchanges. It involves making many trades over a short period with low stop losses and lower take profits. Not all brokers allow traders to scalp, and not all are suitable for this. YOU should take the search for a platform that would be ideal for using such a trading strategy as scalping seriously.

Stock scalping strategy comes with advantages and disadvantages. Among the main advantages are:

good profit for traders with luck (intuition);
quick completion of transactions and regular profits (daily);
you need to follow fundamental, technical or any other analysis.

There are also disadvantages to this strategy. The disadvantages of scalping include:

spreads eat up most of the profit;
low reward-to-risk ratio;
requires a lot of time to trade and monitor charts.

As you can note, scalping has both positive and negative sides. You must decide how much this strategy contributes to your image and style of trading on the stock exchange.

Several tips and factors can help you reduce the high risks in this popular strategy and have a higher chance of securing profits. To successfully trade on the exchange using a scalping strategy, you have the flexibility to choose:

Use currency pairs with high intraday volatility and low spreads. Good examples in this case are GBP/USD, USD/JPY, EUR/JPY and EUR/USD.
Use the shortest possible time frames (no more than a minute).
In this way, choose the optimal time to trade. In this case, selecting the intersection time of the trading sessions in Europe and the USA / USA and Asia is better.
Before trading using a scalping strategy, monitor the market situation for 5-15 minutes.
Set a stop loss of about ten pips.

Such simple tips will help raiders reduce risks when trading using a scalping strategy and increase the chances of effectively making a good profit.

Where To Use The Scalping Strategy?

It was mentioned earlier that not all exchanges allow their clients to use the scalping strategy. However, there are platforms like Binany.com that cater to the needs of scalpers, providing a secure and suitable environment for implementing this strategy successfully.

The portal began providing its services in 2019. It is legal to work in India because it meets all the requirements, namely:

the legal address of the brand is outside the country;
the site accepts the national currency — Indian rupees;
the site offers clients reliable and popular payment systems in India;
the platform fulfils all of its clients’ obligations.

Anyone can quickly and easily complete the registration procedure. Creating an account takes a few minutes. An account will allow traders to access the platform’s services and offerings. You can use all the tools, successfully make transactions and receive up to 90% profit.

Traders from India can make transactions not only on the official website but also through the mobile application. Install the program for smartphones and tablets with the Android operating system. The mobile application has a simplified interface but retains a complete set of functions. You will be able to make all trades, operations, and transactions. The mobile application provides the opportunity to regularly and constantly monitor the situation on the exchange and promptly create the most successful transactions with an income of up to 90%.

New clients from India receive a generous welcome bonus from the trading platform. The platform provides a 100% bonus on the first deposit. You can use the funds received to make transactions and successfully withdraw the profits to one of the available payment systems. Reading about Binany reviews from real clients from India, one can note that the trading platform is high quality, reliable, and secure. It provides all the necessary conditions for efficient and safe trading.

The platform does not limit the possibilities for trailers. You can use different strategies to make trades and get maximum profits. On the site, you can test all the top scalping strategies, select the most suitable ones, and actively use them in the future.