What is Scalping?

The forex trading market remains active round the clock. This means that there are always people in different parts of the globe who are trading between currency pairs and hoping to generate a profit out of it. The forex trading market has become tremendously popular in the past few years due to several reasons. For starters, it allows the average person to make an investment with a very small amount. The barriers to entry are very low, and you can easily trade at any point during the day or night. Because of the fact that the market remains open round the clock, many people often trade in the dead of night.

Now, there are many different trading strategies and styles that a person can use when trading on the forex market. One of them is scalping. Some traders prefer following a long term trading strategy, which essentially means to hold currency pairs for a longer period in order to generate more profits. However, there are many traders who opt for smaller profits in the shorter run. Many amateur traders in the forex market often think of scalping as a viable strategy.

However, what is scalping?
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Why is Latency so important for forex trading ?

Latency or delay as known in computer networking, is the time interval for a process to present an outcome, the time delay between the cause and effect of a physical change within a system. In Forex Trading, latency indicates the time needed for the traders’ requests to get a response from the broker’s server. Latency is considerably important because it can have a huge impact on the price that traders pay in the markets, hence it is significant for latency to be at lowest when making a trade. Traders can identify the range of latency in accordance with the trade that they are executing.

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