Steven Lucas S_ DeLuca
What is scalping in forex and why is it popular among retail traders?
Scalping seeks tiny profits from frequent trades, often lasting seconds to minutes. Retail traders favor it for quick results, but success requires fast execution, low spreads, and discipline. Institutions use scalping algos at millisecond speeds, but human scalpers face disadvantages. Benefits: reduced exposure to large news moves, frequent opportunities. Risks: broker restrictions, slippage, and exhaustion. Scalping works best in highly liquid pairs like EUR/USD during active sessions. Retail traders must ensure their brokers allow scalping and provide ECN/STP execution. Scalping highlights the allure of speed but reminds traders that costs and discipline matter as much as entries.
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