⬅️Definition:
🔴 Scalping is an important strategy in trading that depends on entering into quick deals and taking advantage of price fluctuations over a short period of time. The motto of the trader who adopts this strategy is “grab and run,” meaning to be content with a little and get out of the deal quickly. In other words, scalping is a type of trading. Rapid trading due to the rapid pace of buying and selling, as the trader can close positions within seconds or minutes of opening them, hold deals for shorter periods and trade at a higher pace with the aim of collecting small recurring profits.
Similar to day trading, this type of trading requires an understanding of technical analysis, knowledge of market depth, efficiency, awareness of price trends, and internet speed.
⬅️ Its advantages:
If the trader adopts a logical analysis and enters the trade at the right time, he will achieve a quick and frequent profit, even if that profit is small.
- He can earn more by repeating the deal repeatedly, and this process is successful when the currency being traded experiences rapid fluctuations and continuous fluctuations in price, up and down.
⬅️ Its disadvantages:
The price may suddenly turn against you, causing the trader to panic and selling at a loss.
The trader may feel greedy and repeat the deal repeatedly and randomly, causing the market to turn against him and he loses the deal.
- Repeated trading in a scalping strategy leads the trader to pay additional costs due to repeated transactions, which undoubtedly leads to the erosion of the profits obtained.
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