Scalper Definition – What is Scalper? | CFI LB

scalper

Scalpers are the kind of traders that hold their trades for a few seconds to a few minutes at most.

 

A forex scalper’s main aim is to capture small profits repeatedly during the busiest times of a trading day and can place anywhere between 10 to 100 trading positions in a single day. Scalping is an expert skill that requires someone who can think quickly and focus intensely. It is best suited for a trader with enough time to spend several hours watching charts with undivided attention. Often, they will use expert advisors or other trading plug-ins to help them increase the number of trades they can place in a short period.

 

Scalpers often use high leverage to place larger-sized trades because their strategy consists of achieving greater profits from small price changes. The key thing to remember when trading leveraged or margined financial products is that while leverage increases your total profits, it also works to magnify your potential losses.

 

Scalpers typically use the one- and five-minute charts when trading. They may also purchase market scanning software to support them in finding new trading opportunities. Most scalpers engage in high-volume trading and use online brokers that offer low spreads and low or no commission to keep their trading costs to a minimum.

 

Key takeaways:

  • Scalpers enter and exit the financial markets quickly, usually within seconds.
  • Scalpers often use expert advisors to help them execute their trades.
  • Scalpers must be highly disciplined, competitive, and fast decision-makers.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
CFI Financial Group has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest - CFI LEBANON
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1019238,
Ellipse Center 3rd floor, Charles
Malek Avenue, Achrafieh

CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

CFI Lebanon is regulated by the Banque du Liban and the Capital Markets Authority

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