Euro/pound scalping
Scalping is a trading strategy based on extraction of profit from the minimal fluctuations of exchange rates within one day. The essence of the strategy is in fast catching of quotations increases and falls, profiting at 1-10 pips. It is necessary to mark the ambiguous relation of traders to this kind of trade, as far as instant game process on short and long positions requires undivided attention, concentration, and a lot of energy, though, not guaranteeing positive result. Formally success of scalping depends on correct and fast estimation of rate fluctuations according to the theory of chances made by trader. That is, in spite of quotation increase or fall at the given time point, you stake on astern situation change. If to analyze the daily diagram of tenders, you can to see that curve passed 100-200 points, and the price passed thousands. But it is possible to catch only about 300 points manually even in successful day, and owing to the human factor it is hardly possible to do it constantly. This fact makes it clear that trader-scalper has to make more than 100 operations within a working day; it inevitably leads to attentiveness and efficiency lowering, and as a result to material losses.
Scalping as a kind of trade strategy is usually used by traders-beginners who often operate with euro/dollar currency pair being the most dynamic and simultaneously unpredictable in terms of fluctuation. It is necessary to note that correlation of currencies in the euro/dollar pair is the main current position of English currency per se, because Europe is the main marketing and investment partner of Great Britain. At the same time, pound/dollar currency pair is an indicator of economic results of USA. However these two currency pairs are closely related, and pound trading obliges to know the character of their mutual tendencies.
A euro/pound currency pair is distinguished by enviable behavior stability; sometimes quotations fluctuate on the level of 2-3 point during several hours and do not reach even 15 points for a week. It would seem that more predictable and dynamic currency pairs would be more convenient for scalping strategy use (for example, euro/ Swiss franc), but relative “sleepy state” of the euro/pound currency pair is compensated by high price of one point, which exceeds a euro/dollar pip almost twice; as a result, even slight rise or fall can be used quite effectively. According to analysts, this pair has quite good level when speculating for the decline, and, accordingly, high blunders when rising price.
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