✔️ Information reviewed and updated in April 2024 by Pedro Martínez González
If you are passionate about the world of finance and are not afraid of the risk involved in some operations, then you can learn a trading technique such as scalping.
But What is scalping? In short, it is a style of trading, where large deals of financial products are made, in short periods of time.
Scalping means that a scalper trader enters and leaves the market taking a very fast position, buy or sell; guaranteeing successful operations in very short term. The scalper must have as a virtue, self-control and also, pay close attention to the market.
What is scalping?
Scalping is about entering and leaving the market of a financial product, very quickly, obtaining small profits. It is a strategy to enter the market, take a buy or sell position, of an instrument; take advantage of the price spread, and win in a very short term.
This is a really high risk activity (and ❌ We only recommend it to EXPERT traders ❌, with a lot of experience in the markets), since decisions must be made quickly. In this sense, it is necessary to consider doing operations with very liquid assets.
Scalping allows you to make several transactions in a day, leading to the payment of commissions to financial intermediaries, each time you enter the market. Therefore, it is recommended that you try to find intermediaries or brokers that do not charge such high commissions.
Now you know what scalping is, but you need to choose the best broker.
What is the best broker to scalp?
A broker is a financial intermediary, represented by a company or financial institution, which provides the appropriate platform for the scalper to operate. The broker executes the buy or sell orders, receiving in exchange commissions for each operation carried out in the market.
The important thing is to have a broker that is SAFE and offers the best possible conditions:
📌 The best broker must📌 :
- Facilitate operations, offering information on prices and conditions of a certain product.
- Offer responsibility and security of client funds.
- Provide the client with various analysis tools such as price history, indicators for analysis and market updates.
- Offer a low spread and commission charge (good trading conditions).
- Provide platforms with graphs that show movements in minimum time space and fast executions.
- Be a properly regulated broker.
- Have a good support service - customer service.
How are scalping operations carried out?
- The scalper makes his analysis, makes the investment decision and takes the orders to the market.
- The broker executes the orders of his client or scalper, from his trading account, using a platform that connects to the internet.
- The client collects the profits, or failing that, admits the losses.
- The broker receives his commission, even if the result is not the most favorable for the client.
📌 To carry out a scalping strategy, it is recommended that you do it on very liquid assets, with very little commission and with a reliable broker. A successful scalper must have prior knowledge of the market and have an excellent trading platform. 📌
Very good explanation, it has clarified my doubts and I have understood it perfectly! Thank you!!