Do Scalping And Pipsing – These two words are often heard in the Forex market. Scalping and pipsing are the types of trading strategies used by traders to profit from fluctuations in currency fluctuations within a given day. Such commands are carried out within a very short time, sometimes in only a few minutes. When you use a trading strategy, your income each order can be very small, but the total profit can be quite high, because the value of the orders it.
So, what is the difference between scalping and Pipsing?
Pipsing regarded as trading activities for the period very short, usually only lasts up to 2 minutes. Scalping – short-term trading, which takes 4-10 minutes. However, the principles of these strategies are the same. The Forex trader and execution of orders of this nature during the day and late in the day, the level of 200 points can be achieved. With the rapid closure order, the impact of adverse market conditions, the scalper (pipser) try to minimize the loss, in order to obtain positive trading results. Wherein is minimized the risk of loss.
It is no secret, Forex has a high volatility Avatrade review. In one day, prices go up and down within a certain range. Prices may be higher than more than 100-150 points in a few minutes, in the presence of a key press release. Precisely because in view of the frequency of such changes, it is possible to increase the gain. This kind of trading strategy is very popular among traders. The beginners who have no experience, think about using this strategy to scalping require no specialist knowledge. However, it should understand that trader trading strategy requires knowledge and practice.
Lack of Scalping and Pipsing
If you use an stop Loss the placement will be a certain amount of time required needed for scalping strategies, this would result in a delay that can reduce the possibility of profit. Some traders see this as a refusal to place a stop loss, but this way are at risk for loss of earnings, for example, in a state of change in price direction is not desired by a merchant. If this situation occurs, the price correction will go to the previous level, probably a long time.