Thursday, April 1

What is scalping?

With cfd brokers australia, the aim is to keep positions open only for a short time and to generate small but large profits. The positions are kept open for a maximum of two minutes, often only a few seconds. If the intervals are longer than two minutes, it is no longer considered scalping, but rather intraday trading. Profits range from one to five pips per trade, so it takes a large number of positions and leverage to make the strategy lucrative. The size of the lot is also decisive here. With the standard lots you can of course make significantly higher profits than if you make 1 pip plus with a micro lot.

However, this deriv trading is not necessarily suitable for beginners. Since a high leverage and large lot sizes are used, laypeople can use up their trading capital quickly. In addition, it takes some experience to cope with the nervous strain and some discipline to optimally pursue the strategy. In addition, “scalpers”, as the users of this strategy are also called, rarely use stop-loss or take-profit functions because it simply takes too long to determine them.