As one of the popular trading strategies, scalping is a special activity that requires technique and basic preparation to produce his best potential. A lot of things to be aware of before you start using scalping techniques.
There are three types of pair type corresponding to these techniques, is a pair of major, the pair carry, and exotic currencies. For starters, where are the best forex pairs for scalping?
1. Forex Major Pairs
That included a pair of main was EUR/USD, GBP/USD, USD/CHF and the pair formed from most currencies dominate the world economy. Although the JPY could be included into this group, they have a movement which is different from the other majorpairs. JPY are different and will enter in groups of pair carry.
The main properties of the major pairs are illiquid. The nature of the two is a relatively calm response against market turmoil. For example, the pair AUD/JPY can move up to 100 pips against a market turmoil, while at the same time the pair EUR/USD will only move as much as 30 pips away. Pair of major traded across the world almost by all banks and important institution. They become giants in the currency markets because the volume of trading and this move relatively slowly.
Scalper reliable tend to trade slowly and carefully to get the profit that the Conservatives will tend to choose the major currency pairs as best forex scalping for pair
2. Pair Carry
The pair carry is liquid currency pairs, but volatile. Currency pairs such as the EUR/JPY or USD/JPY traded around the world and their trading activity is pretty solid, but they are also very fast moving. This is due to the large number of perpetrators of financial currency using Japan to borrow and invest in various assets at risk. As a resultof market turmoil occurs, this forex pair will react with excessive and resulted in traders cannot be guessed easily pair movements, especially for users of scalping techniques that work in a short timeframe.
The pair Carry commonly traded to get flowers. Although it is possible to do a scalping, but this currency pair is not the best pair for scalping. Spread the pair could carry widens with rapid, even stop-loss will not be able to save your account from significant losses.
The change spreads widening is not surprising on a pair carry. Whereas, in such major forex pair EUR/USD, drastic movements like this are generally visible only after the release of the NFP data or change interest rates to major pairs. Compared to major currencies, the pair will carry begerak with frequency of more frequent, more deeply, and durable.
Therefore, it is not recommended for the novice trader to use the scalping techniques on a pair carry. Scalper trade generally reliable pair carry with General trends and follow the strategy for the strategy to exploit the sharp changes.
3. Exotic Currencies
Exotic currency is forex pairs are rare, less liquid, less known and thus not included in the best forex pairs for scalping. This group included in volatile currencies like theNOK/USD (NOK is Norwegian Krone), Russian ruble, BRL/USD (Brazilian real) and others.
These groups are not appropriate for scalping because the price difference is the unpredictability of making it difficult for scalper to predict changes in a short time. A trader with a scalping techniques should be able to avoid this exotic currency pairs in order not to lose money.
Conclusion :
It can be concluded that best forex pair for scalping is Major Pair Scalper can use the pair carry if you already found the best strategy for scalping on the pair. However, it is still advisable to take heart. In addition to the pair in what is best for scalping, traders will also need to pay attention to the spread of each before applying the strategy. Telalu large spreads can be detrimental to the scalper who play in the timeframe is low.
The exact period of time trading also noteworthy when scalping. Traders have tendencies select trading time in accordance with their strategies. Some users liked the scalping techniques time periods where market conditions have no direction, whereasanother scalper will choose trade on a market directional, high liquidity and diverse.This option corresponds to the tastes of each trader, as both offer different conditions. Choose a time that fits with your strategy.
Scalping is a strategy that requires concentration and special skills. If you want to try this strategy to get gains. keep in mind that a trader would have to test the strategy, choosing the best pair for scalping. Note also the policy broker where you trade.Choose a broker that provides a good trading conditions and allow scalping techniques.
Best Forex Pair For Scalping
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Renvin Nelwan
