Is it safe to use high leverage with a scalping trading strategy?
Asked 4 years ago
Hi, I want to try out a new trading strategy with my crypto. I'm looking for something that is a little more fast-paced. I'm aware that scalping is a high risk, but if I can get it down, then I'd make significant profits. Ideally, I want to leverage my trades while focusing on a small number of pips. Would this decrease the risk involved?
Alec Wiggins
Tuesday, August 16, 2022
Professional scalpers that have been trading for quite some time now (usually about 2+ years) use leverage with their scalping strategy. Let's say you have a $10 position. A 1% profit without leverage is just $0.10, but with 100x leverage, it's a $10 profit - effectively doubling your position.
However, leverage should only be used by people who really know how to scalp. If your position starts going red, it's really better to just close it than to get margin called due to your leverage.
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