Scalping – What Is It ?

Scalping – What Is It ?

Scalping – a strategy in the financial markets. The strategies of trade occupies an intermediate position between the HFT (Hight Friqency Trading) and the action of trading. HFT – a high-frequency trading, that is committing the greatest possible number of transactions per unit time and taking the minimum possible profits – in many stock instruments such a force of only trading robot. Day trading involves the conclusion of transactions within the day with various strategies Opening and holding positions. Types of analysis to generate signals for opening and closing position in such trading style in abundance. The whole essence of the action trading comes down to profit-based price changes, with economic and psychological component. These changes are day traders are processed within a day and the vast majority of transactions on the next day do not carry over.

Between these different types of trading and is its place scalping. Below I will try to highlight its distinctive features. In this case, I note that in its pure form is difficult to meet the scalping. Typically practicing this approach traders at its base acquire a hybrid Scalping with elements of HFT and / or action of trading. Therefore, pre-shoot the issue of different interpretation of the definition of scalping – the aim of this paper is to show only its foundation. What is so remarkable for scalping, or Scalping even intraday-trading, as it is called by some American traders? So what are its strengths and weaknesses? Finally, someone will be close in spirit to this style of trading? Hopefully, a brief overview of the main properties of scalping, I can answer these questions.

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