Forex is derived from the word foreign exchange ( also known as FX), is basically buying and selling foreign currency, and online forex trading is foreign exchange done on an online platform. Forex trading is the simultaneous purchase of a single currency and the sale of another currency. The Forex market is a market that operates 24 hours a day and 5 days a week. All you need to trade is a computer and internet connection, and you can trade anywhere in the world. Of course, you will need to finance your account or trade with a broker offering welcome rewards. Currencies are traded through an intermediary or dealer (broker), and are traded in pairs example of currency pairs include EURUSD, GBPJPY.
Who is a scalper?
A scalper is a trader who opens positions for a very short period of time, taking advantage of every move in the market. The main objective of this type of forex traders is to get very small amounts of points as many times as possible during the busiest times of the day. Thus scalpers should stick to charts, it is best suited for those who can spend several hours paying full attention to their trading charts and like spending time behind their monitors. Scalping is not for those looking to make big profits all the time, but for those who like to earn small profits in the long term. Forex scalpers trade currencies based on a range of instantaneous analyzes(real-time information). They want to earn small profits but so often that, at the end of each trading day, they have a large amount of revenue. The time frame when speculating can be short, as short as one minute. Trading one-minute candle charts is popularly known as micro-trading. You can use the RSI and Moving Average to trade.
The main focus of the scalping strategy is the extra attention the trader gives to the movements of the Forex market. Since the trader is always watching the market closely, the operator can predict by default when the market is in the middle, up or down. The skilled trader will then come out to buy a pair of currencies when he feels appropriate and then the pair is sold as soon as the trader sees that he can reap some of the few profitable points. Profitable traders trade when the market is bullish and when the downtrend is down, every single move at a time is of great importance to speculators.
Recently, due to advancement in technology, some forex traders do not trade to manually, they use forex trading programs or robots. It helps in faster execution of trades. It increases the speed of execution, making trading effective where entry points are placed at the most appropriate time. Moreover, the intuitive interface makes trading easier. A trader can let the robot work on his behalf by reading market volatility. As robots come into circulation with their limitations, they can execute transactions in reverse if they are not well programmed.
Scalpers are not the most loved person, because they ask for a low leverage, thus they are a source of inconvenience to some brokers. They usually trade in a position even before the broker can fill out his first order. As a result, brokers can lose money from the transaction, but because of advances in technology, brokers today have an opportunity to fill in the orders they receive more quickly.
As scalpers tend to be misused, so it is appropriate to use a reliable and a broker that can be trusted, it is necessary to know what your regulatory agencies are. Despite the fact that the Forex market is considered unregulated, you must verify that your broker has a suitable record otherwise you will not have the ghost of a chance to return your money in case of fraud or manipulation. Beware of unregulated brokers and within registered brokers, choose only those strong bonds. Before opening an account in a particular brokerage firm make sure it provides high-quality customer support 24 hours a day. If you can at any time day or night contact the company by phone, e-mail or otherwise and get the necessary information from the knowledgeable representatives you have chosen.
Features and factors to look for when choosing an online forex broker:
low price, that is the difference between selling and buying prices
Perform instant commands.
Technical analysis and charts should be available for free.
Currency pairs. Good brokers offer at least seven major currencies (USD, JPY, GBP, CHF, EUR, CAD, CAD).