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Ryan

What risks am I prone by using the Forex scalping trading style?

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Hello Ryan,

Forex scalping involves buying or selling a currency pair and holding it for some time to make a profit.
Like any other trading technique, some risks come with scalping.
While scalping, you can make a considerable amount of profit within a short time. Consequently, your losses can easily accumulate. You need to know the trading strategies to employ to avoid making losses while scalping.
In scalping, you place many trades at the same time. From this, you may make a small loss from each trade you place, this small losses when combined are significant.
A forex scalper needs a trading account whose commission fees are less. These trading accounts should also enable them to place orders at the price that they want. These features are however, only available in ECD forex accounts.
 These trading accounts enable you to select the price you wish to trade with.
The chance you will succeed as a Forex Scalper may be nearly impossible if the commission you pay in a trading account is high.
The countries that own the currencies used in a Forex market often give changes related to these currencies, therefore, affecting the volatility of these currencies. The prices of these currency pairs fall during this time. It is, therefore, not easy to set a stop-loss order that will help minimize the risk of making a loss.
Scalping is not easy, especially if you do not know the market well. Consider knowing the market well before you scalp in a Forex market.
 

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