Contents of this article:
Scalping on futures is a profitable trading strategy that traders actively use on popular and large exchanges. Scalping is called one of the most difficult trading styles due to the short duration of trades and the fast pace of opening positions. We will tell you what is the peculiarity of futures scalping , and what strategies can be used.
What is scalping and why is it popular among traders?
Scalping is a style of trading virtual assets that allows you to profit from a slight change in price. This is a way to earn as quickly as possible by opening deals for just a few minutes. During the trading day, the scalper opens dozens of orders, each of which brings a small income, but the main thing is the total daily profit.
scalping on B inance and other popular exchanges is considered profitable, especially for traders who use this trading style as their main one. But it is also often used as an additional in combination with other strategies.
Features of the scalping strategy on futures:
Strict risk control. Transactions are opened for small amounts, and the maximum risk per position should ideally not exceed 0.5% of the deposit. To control risks, a trader must constantly monitor the market situation, concentrate on current trends, and pay attention to the order book. There is even a separate scalping strategy for DOM futures.
Selection of assets with high liquidity. Cryptocurrency futures are one of such assets, they have high volatility, their rate changes during the day, giving the scalper the opportunity to earn.
Using high leverage. This is necessary to increase the potential profit.
Application of indicators. Having chosen a high-frequency trading strategy, a trader should not neglect indicators, because they help to determine the optimal entry points to the market.
Futures scalping strategies on Binance and other exchanges
There are many effective scalping strategies for stocks or futures. Let’s talk about a few popular ones that are worth a try. One such strategy is breakout trading. In trading, a breakout is when the price of an asset goes beyond a predetermined area of support or resistance. If the price of an asset overcomes a certain level, it is called resistance; if it falls below, it is called support. To profit, traders wait for a breakout and open a position with the trend.
Equally popular is futures trading on indicators, for example, Moving Average (moving averages). Using this classic indicator for exchange trading, a trader can predict the direction of the course movement, its strength, as well as determine the optimal entry and exit points for a transaction.
Automated strategies, such as automatic stop loss , are also suitable for futures scalping . Trading with the help of special software tools increases the speed of trading and eliminates emotions from the process, because it is automated and its parameters are set in advance. A stop loss is a command to exit a trade in the event of an unfavorable rate movement. Trading futures with stop losses allows you to reduce the risk of loss and control losses if the trade was unsuccessful for the trader. Players set stop losses to protect the deposit and trade according to their own money management rules.
Understand how to trade futures, scalper can only from my own experience. Training should include a theoretical and practical part. For successful earnings, it is important to master technical and cluster analysis, learn how to work with indicators, analyze the situation, choosing the best entry points. Scalping is a suitable trading style for those who are ready to dedicate themselves to trading , spending a lot of time on the stock exchange.
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