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Hello All,
I'm new on Futures and it's my 1st thread !
I want to get into Forex Scalping but I don't know where to start, if someone can advice me it would be really cool !
Thanks and Good Trade all !
@valianus, you can do trading in currencies basically in two ways:
1. What is generally meant by "spot" forex trading is when you are basically trading with, and actually against, your own broker. The broker provides the quotes and buys from or sells to you. You're not actually trading on an organized exchange or market against other traders. Instead, each broker provides their own "market". This may not be the best idea (), but if you do this, you may want to find a "non dealing desk" broker who will pass on your trade to some external provider(s) and so doesn't profit directly at your expense. More info is here: https://nexusfi.com/articles/trading/Non-Dealing-Desk . This is also called Direct Market Access, because the idea is you tap into a larger market, although in fact there is no one market for spot FX you can tap into -- it would just be bigger than your broker.
2. You can trade currency futures on a futures exchange, such as the CME. You will be able to find futures contracts on all the major currencies and currency pairs, but it is on an exchange that is independent of your broker, is regulated, and has a large number of participants that you are actually trading with.
One advantage of the broker-provided FX is that generally you can trade with extremely low initial deposits, which is helpful to the complete beginner. However, the CME offers "micro" versions of the main currency futures, which also require small initial amounts, so this is also a good learning vehicle.
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There are traders on FIO who trade currencies either way. To get started, you could take a look at the trading journals that traders publish and regularly post to, whether in currencies or not. Or you could simply do a Search -- I just did a Search for "fx" in the Search box at the top right of every page, and got 150 hits. If you click first on the Search button and choose Advanced Search, you will go to a page where you can further refine your criteria.
Or, on the main page you can click on "Currency Futures" under "Traders Hideout" (look way over on the right, last column) for a list of threads just on currencies.
It is also useful to start a trading journal of your own, or simply keep posting in this thread. You will receive feedback if you are putting something out for people to respond to.
Basically, you will want to browse around, perhaps ask questions, and find other currency traders and where they are posting.
Good luck, I hope this helps you to get started.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
I have been doing forex for a very long time. The spreads in scalping forex will almost always win in the end. I once ran a scalping bot that did extremely well. In the end, the commissions started to surpass the profits.
Scalping works on futures indices etc. Not the currencies in my opinion. I took many years for me to figure that out.
This is just my opinion. You better find a very low commission futures broker and trading the new micro ES if you want to scalp.
Agree with the previous posts, the spreads are going to kill any profit you can make scalping Forex. I have traded intraday Forex and buy and hold for days or weeks. The best strategy imo for Forex is the buy and hold strategy such as swing trading. As suggested by others, your best bet for scalping would be in the futures market.
It all depends on how OP defines scalping and uner what circumstances. What is it? tick, seconds, minutes, hours? Peak liquidity (US/European session) or lower liquidity like pre session or overnights? Ripper instruments like usdzar or something slower like eurusd?
With futures you still have the bid/ask spread to contend with. EURUSD spread is so tight that it can be fairly compared on the subject of scalping with the added bonus that its liquid AF so you very rarely encounter slippage. Futures follows spot and any sudden spikes on currencies will more than likely result in gapping on futures especially the micros, so on one hand you are succeptible to widening spreads and on the other hand you suffer from gapping.
@valianus. We need more information. How do you intend to scalp?
Right. For some, "scalping" means grabbing the spread between the bid and the ask (which was the original meaning, btw.) This is nearly impossible for almost every retail trader. (Well, I don't really know if it's nearly impossible for every retail trader, but it would be impossible for me. ) But for some, "scalping" just means "really short term trading," which can mean whatever the person thinks "short term" means.
@valianus, what is "scalping" to you, and how are you thinking of going about it?
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
To be honest I'm pretty new and I choose FOREX market to start trading, especially scalping ( some infos found on google ) and I don't know if it's a good thing to start with for a beginner.
Do you think my choice is good ? or can you recommend me something else ?
You're entirely welcome. It can be very difficult just to get your bearings when you start to enter the world of trading.
Just so you know, scalping, no matter how it's defined, is often regarded as the most difficult way to trade, whether for the beginner or the professional. You can find just about anything on Google, whether right or wrong.
I would say, keep poking around the forum and keep asking questions, as well as just reading other traders' posts, especially in their trading journals. You will begin to get a sense of the issues traders face, which by and large are the same for all, no matter what the strategy or what you're trading. Also, it's good that you went with the Elite subscription. Most of the posts in futures.io are by Elite members, and much of the good stuff is in the Elite section.
Basically, look around, find the threads you like and that speak to you, and get your feet wet.
Once you have your bearings to a degree, you will have to get some trading done to understand it -- first in simulation ("paper trading") mode to get used to the markets, and then perhaps in one of the "micro" futures contracts that involve low dollar amounts and so lower risk. Trading is a challenge that is learned by getting involved in it.
There are micro contracts offered in currencies and in the stock indices. They are fairly new in the indices (S&P, Dow, etc.) and have proven to be very useful for traders starting out. There are extensive discussions on all the issues in threads dedicated to them, and in traders' journals, which I suggest you start reading.
Good luck. It's a climb, but it can be rewarding and satisfying.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote