Scalping is a trading strategy that takes advantage of very fast price fluctuations, even in minutes. Scalping strategies can be applied to stock, crypto, or forex trading, but the three trading instruments have several differences, as follows:
Market Hours
Crypto Market: Operates 24/7 or non-stop.
Forex: open 24 hours for 5 working days a week,
Stock Market: According to standard working hours and each country is different.
Scalping Strategy
Crypto: scalpers must be able to take advantage of price fluctuations quickly.
Forex: scalpers can focus more on small price changes in the currency pairs they trade, they can also use leverage to increase potential profits.
Stocks: scalpers will choose stocks with large volumes to make small profits.
Market Volatility
Crypto: Crypto market volatility is very high and price changes can be very fast and drastic.
Forex: Forex market volatility is not as extreme as crypto market but higher compared to stock market volatility.
Stocks: Stock market volatility will depend on the type of stock, but stock volatility is lower compared to forex and crypto.
Market Hours
Crypto Market: Operates 24/7 or non-stop.
Forex: open 24 hours for 5 working days a week,
Stock Market: According to standard working hours and each country is different.
Scalping Strategy
Crypto: scalpers must be able to take advantage of price fluctuations quickly.
Forex: scalpers can focus more on small price changes in the currency pairs they trade, they can also use leverage to increase potential profits.
Stocks: scalpers will choose stocks with large volumes to make small profits.
Market Volatility
Crypto: Crypto market volatility is very high and price changes can be very fast and drastic.
Forex: Forex market volatility is not as extreme as crypto market but higher compared to stock market volatility.
Stocks: Stock market volatility will depend on the type of stock, but stock volatility is lower compared to forex and crypto.