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What is scalp trading and how to scalp trade on betting exchanges?
The easy to understand meaning of scalper and scalp trading when you’re new to betting exchanges and online betting. Walk before you can run, or you’ll fall
Published on 26 May 2019
Updated on 26 May 2019
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This Betfair scalping tactic is one of the most interesting paths for many newbie Betfair traders.
If you’re just starting out on your betting journey and you want to understand the system, this post is what you need. First, I’ll explain what scalping is…and then we’ll get down to the more interesting bit.
Who is a scalper and what is the meaning of scalping?
A scalper is anyone who makes a profit from short-term movements within the core price of a market. They’re particularly short term traders. Their objective is to make some money on the spread amid the back and lay price.
What is the most effective scalping strategy?
Scalping is a name for the strategic approach utilised by traders on Belfair’s markets. Just as the name proposes, you want to scalp small profits repeatedly from the market to build up your overall profit.
The idea behind scalping trading is very straightforward, if you chose to back a price, you need to lay at a higher price (ideally a much higher price), or, you can lay a price and back it at a lower price to make a profit.
Whatever the outcome, your profit is certain and is equivalent to the difference between the back and lay price.
Scalping depends on the market liquidity. It needs an endless stream of money going into the market, backing and laying at various prices. As the price sways, a scalper can make money. Profits on individual trades may be small from a percentage return perspective, but if you can perfect this approach over the long-term, you can make good money across the betting exchange markets.
I’m sure you’re aware that Betfair is the most popular betting exchange; it offers almost guaranteed market liquidity and market fluidity, which makes it every trader’s betting exchange of choice. This further enhances the cycle and draws more experienced traders and new entrants into the betting exchange; thereby offering even more betting options and attractive odds for traders across the exchange.
To scalp on Betfair you need just two things, a Betfair trading account and a Betfair trading app like BetTrader.
Betfair Horse racing is one of the popular short term trading markets. So much money goes into these markets even before the race begins, and this’s the right time to scalp the market.
Bear in mind that a strict exit policy must be executed because one large loss could eradicate the many small profits that you have worked so hard to get. Needless to say, the self-restraint to get out of bad trades and manage risk is very vital and if executed properly it’s likely for a scalper to make regular profits.
A lot of Betfair scalpers don’t know what they are buying and selling, neither do they allow form to cloud their judgment when making trading choices. On the contrary, they rely on predictable and familiar short-term price patterns that they’ve learned to recognise and use to their advantage.
A Betfair scalper does not need to know what he’s buying and selling because in most cases, form has no relevance to the short-term view, regardless of whether the scalper is purchasing and selling horse racing, oil futures, or stocks prices.
The key to being successful is speed: the sooner you take your earnings, the less risk you're taking and the scalper should avoid risk by all means. Risk must be minimised in any way possible which means holding your positions for the shortest possible time frame. With any luck, this will open your eyes to what scalping is all about.
As a newbie starting a new trading scheme, it’s will be a good idea to test your scalping strategies without jeopardising your money. The BetTrader software stated earlier within the post has a training phase where you can test the waters to know your capability without risking your cash.
Pros of scalping
• The scalping concept is easy and rule-based, so it can be programmed. It can possibly generate regular profits with very little input.
• Those experienced and well-resourced can make it scalable and profitable. To accomplish this, you need bots or trading tools that are super-fast at implementing bets.
Cons of scalping
• The top scalping software come at a cost, which is usually presented as an ongoing monthly payment.
• Prosperous scalpers want other scalpers to scalp in order to create fluidity and liquidity for their trades. Like most models you apply to Betfair, there is a risk that you will end up losing all your money to the skilled professionals.
Making scalping very profitable
To make a profit from scalping, the impulses of profit must be superior to the outcome of the losing and scratched trades. This is how to make it very profitable.
Not all success stories out there are true, so don’t be gullible
There are several sites out there that claim to teach you profitable scalping, to enable you to earn steady profits by the end of their subscription-based training or course. Perhaps I’m skeptical but in all honesty…. Not all that glitters is gold.
It amazes me that these tools and courses were made by unproductive — or you might say, average successful scalpers. Surely these personalities would be making a killing from scalping if it’s as lucrative as they claim.
Besides, it’s not as if Betfair restricts your account once you are winning. So, you must ask yourself why these guys would fancy selling their solution and not to scale up massively. You just must wonder why.
Let’s reiterate the main points, so you can take something from this post
Scalping is the process of betting on both sides of the market (Lay and Back and back and lay as the case may be) with the aim of making profits from small-price moments. Do not believe everything you see on online especially on YouTube.
Be watchful whenever you are being sold a trading system that promises enormous riches, as everything that glitters is not gold…
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