Who Are Those Scalpers?
I guess, we perfectly know what is the Internet, Bluetooth or WI – Fi. And here who are the scalers and whether correspond actually that that this word means to that how much frighten it sounds?!
In the forex term scalper means the person trading short movements of the market, and sometimes and on the minimum splashes in the price. In practice it looks as follows: the price starts to creep upwards, and, having passed some points, breaks the growth. During this moment no one can predict the further behavior of the schedule. Here for good reason scalpers, selling or, on the contrary, roughly buying papers also are accepted. The price moves off dead center and starts to be displaced, accordingly downwards or upwards.
No matter what key events during this moment actually haven’t occurred, but price fluctuations can mislead item traders who can try to “add” to positions as the price has moved off dead center, or opposite, to try to close the transaction as price movement has stopped. During this moment scalpers hand over a short-term position to traders. It turns out that they have organized price movement and, “having staid” all some points, and used a situation simply having played on nerves of item traders.
If to try to analyze, why so has occurred, the following turns out. The situation bears a faint resemblance to children’s birthday when during a noisy holiday from the got hungry and intrigued children take out a delicious and colourful dish. The price starts to grow in a situation when scalpers are bought up, – traders add to a position, buying new papers or contracts, at the price above that on which was the price stop is fixed. They, having purchased originally on some points more low have earned their profit. Actually they have forced item traders to purchase above equilibrium price of the market.
The similar situation occurs and at “falling” – scalpers meaningly endow a part of the future profit, but as a result all the same appear in plus. The volume of money “on hands” at scalpers or is equal to a percentage ratio or exceeds their quantity at position traders, thus they have time to make to 3 – 5 complete cycles of opening – closings in a day. Now there is clear a sense of the term “scalper”.
People who took the decision to participate in forex trading must start from learning the basics of this market to make sure you do not have problems with this industry.