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HomeFOREXWhat does "scalping" often mean in foreign exchange trading

What does “scalping” often mean in foreign exchange trading

Scalping originally referred to taking advantage of network or communication problems to profit from quotation errors. For example, a dealer’s quotation at a certain time is one minute later than other dealers’ quotations, and the behavior of profiting from this time difference. However, now the trading pattern of ultra-short-term positions of no more than 3 minutes has basically become ” scalping “

Derived from the back are pending order transactions, high-frequency market-making depth, and arbitrage on double-setting platforms. cTrade MT5, JForex.

The cost (risk) of this method mainly comes from the assumption of low-latency servers, which is very expensive; the loss of the test platform, the exchange rate difference caused by constantly changing platforms , and if you make money, the platform will not give you money. If you enter the bank’s offer, you’ll find a lot of people doing it, but it’s hard to make money because everyone is playing at the same price. Only the best hardware traders have an edge, while almost everyone else has a hard time making money. So aside from being a marketplace platform, this thing is definitely profitable, but it also follows the rule of 28.