Active Trading

Trading operations on the currency market can be divided into two types: passive Forex trading and active trading. In general, the difference is in the number of transactions per unit of time, but sometimes the trader’s activity is defined by the amount of risk.

Traders who perform a large number of deals per unit of time are characterised as Active. As a rule, this is defined as scalping (or pipping), a technique created especially for short-term trading. Active trading on Forex is often also called “aggressive trading”, when the trader’s risks are significantly overstated.

The weak side of active trading is the spread importance increase. As mentioned above, active trading means a big number of short-term deals. And their values at closing (in points) are usually much lower than when dealing at medium-term timeframes.

Active trading requires permanent attention. That means that trader should always be at the terminal, evaluating everything that happens at the market. In opposite to medium-term trading, in which there is absolutely no need to rush, when trading in “short”, You have to take quick and exact decisions.

If you are an active trader, there are potentially several simple rules you need to follow in order to aim for a successful trade:

  1. Always perform a high-quality analysis of the market
  2. When taking a decision to go on, use in your strategy no more than 3-4 indicators;
  3. If you have 3-4 losses in a rawrow, potentially it is time to take a rest. You will may never recover your lost money. Losses are an integral part of the trading process;
  4. Never open an order if the decision is not for 100% in line with you trading strategy.

Anyways, active trading is very popular, because you can get 30-50 deals per trading day, leading to the quick growth of the deposit, of course your capital is also more frequently at risk and could be lost entirely should you suffer consecutive losses.

To all our clients, who prefer active intraday trading we are happy to offer:

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Lower commission rates

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Individual settings of liquidity provider

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24/7 support