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What is scalping?

# Forex for dummies

Forex scalping is one of the trading methods.

Forex scalping is one of the trading methods that has already become classic. This method was developed specifically for short-term trading.

It provides for profit only from transactions, the duration of which lasts from several seconds to several minutes.

This concept was called traders who specialize in short-term transactions – a scalper. Forex scalping operation is characterized by short-term trading with a small number of points with a large volume of lots.

It is worth noting that scalping on Forex can be called one of the youngest technologies for earning in the foreign exchange market. However, over time, this trading system has proven itself in short-term trading on the foreign exchange market. Today, forex scalping is used by both beginners and experienced traders. What is so attractive for Forex scalping for beginners, because short-term transactions bring little profit?

The answer is simple: making a small profit with a successful transaction, with failure, it will bring a small loss. Among other things, this is the most convenient way to trade when it comes to limited financial opportunities.

Putting it all together, we get a good strategy for a novice trader. However, in order to work in the scalping system it is necessary to have certain personal characteristics such as: attentiveness, ability to concentrate, speed of reaction, “iron” nerves. Thus, scalping on Forex is an effective and proven method of earning in the foreign exchange market.

In order for this strategy to become profitable for you, you need several conditions: the nature of the work corresponds to your temperament – a sanguine person or a choleric psychotype. At the same time, you must have a stable nervous system, a set of necessary knowledge to work on Forex and a great desire to work and earn.

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To conclude a framework agreement, the client is obliged to confirm that he is familiar with the following risks associated with the conclusion, execution and termination of obligations under the framework and individual agreements:

1. The risk of loss to an individual as a result of changes in foreign exchange rates (currency risk).

2. The risk of loss to an individual as a result of non-performance, untimely performance or incomplete performance by the Forex dealer and (or) the bank in which the Forex dealer account is opened, financial obligations to such an individual in accordance with the terms of the Agreement and Separate Agreements (credit risk )

3. The risk of loss to an individual as a result of a violation of applicable law and (or) internal documents of a Forex dealer by employees of a Forex dealer, a malfunction (failure) of software and hardware of a Forex dealer and (or) individual, a mismatch of software and hardware of a forex dealer to the nature and volume of transactions it conducts, transactions by a third party on behalf of an individual as a result of receipt by such a person randomly or as a result of his deliberate actions of unauthorized access to the possibility of making such transactions on behalf of an individual, carrying out operations by an individual that are not in accordance with his intentions, for reasons related to insufficient experience of working with this individual with software and hardware of a forex dealer and (or) making it random actions, as well as the result of external events (operational risk).

Contracts or financial instruments proposed for conclusion are highly risky and may lead to the loss of the deposited funds in full. Before making transactions, you should familiarize yourself with the risks associated with them.

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