Scalping
Scalping
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Scalping is a kind of high-frequency trading, which entails getting the profit at any volatility rate, even the lowest. Transactions are made several times an hour, sometimes - tens an hour. The advantage of the strategy is that the trader should not wait for the development of a curtain situation and analyze the market in detail and deeply. He conducts primary analysis (or he does not conduct it at all) and trades in spite of what is happening in the market, because the minimum fluctuations are always observed. The scalping strategy in the trade of crypto currency has gained popularity on the crypto-exchange stocks since their appearance.
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The work of the scalping strategy in trading of cryptocurrency.
Technically, the side of scalping is high-speed and high-frequency trading. The trader opens and closes positions (makes deals) very often - with a regularity of once every 1 to 15 minutes. Each transaction, ideally, brings him a small income. In sum, a small profit from all transactions translates into impressive figures as a result of several hours. For example, a trader, who trades for a long time intervals, takes a long time to calculate a good moment to enter the market and waits for this moment. If he is experienced and the forecast is correct, he will get a good profit as a result of one successful deal – lets say $ 50.
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A trader who prefers scalping makes a very superficial forecast or doesnt do it at all, he always opens positions when the exchange rate changes even little (this happens almost every minute) and he gets a small profit from every successful deal- let`s say 0.5-1 $. As a result, the trader takes as much time as the first participant in order to receive $ 50, because all the time while the first trader was predicting, the scalper was making deals. Scalping owes its name to this superficial profit from every deal. Figurative identification "scalp removal" - "top removal". This is the definition of "withdrawing" small amounts of money that are easily accessible.
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