In forex trading you can use leverage which enables you to make large trades with a small deposiit. To make profits scalping it is important to use leverage so you can provide from small moves in the market.

For example, with 25x leverage, you can double your profits if the market rises 4%; with 500x leverage, you can double your profits even if the market rises only 0.2%. With high leverage, even small price movements can result in large profits.

When scalping leverage is important, however there is a high risk of losses. Using leverage is very risky, and many traders lose a lot of money by scalping.

Below are tips for safely using high leverage when scalping.

Point1

Keep your account balances small

When using high leverage, you do not need to have a large account balance to trade a large position. Keeping your account balance low can prevent large losses as most broker exit client positions and prevent new trades when the balance gets close to zero. Should you make a loss you can easily transfer more funds to the broker to continue trading the next day.
Point 2

Regularly withdraw profits

When you trading a highly leveraged account, you can quickly make large profits and gain confidence. However, if you get over confident and start making losses it becomes difficult to stop trading. If your account has a large amount of profits it can be a good idea to withdraw profits from your account. Keeping a low balance and withdrawing profits prevent one bad trading causing big problems.

High-leverage scalping can be very profitable for a very small number of traders, unfortunately most traders incur significant losses. Following advice in this article and help you become one of the rare high-leverage scalping traders who are profitable.

This article is for educational purposes and not meant to be advice.

[Disclaimer] The content provided by tradesensible.com is for educational purposes only. Please understand the risks of investment and trade at your own discretion and responsibility. Although we pay close attention to the content, we do not guarantee the accuracy of the content and we do not take any responsibility for any damage incurred based on the content. In addition, it is prohibited to reprint or post this content without our permission.

Privacy policy