The 60 Seconds Scalping Strategy - Why Islamic Accounts Benefit
Trading binary options is normally a slower task than that of scalping, but it is also much faster than the normal timeframe seen with normal stock investments. However, investors came up with a strategy dubbed, 'scalping' which takes fast trades to a whole new level. The idea is to trade when an option only rises slightly.
With the 60 Seconds Strategy you are trading against the clock.
A Forex World
The 60 Seconds Scalping Strategy is meant for forex. When currencies rise one or two pips, a trade is to be made. The idea is that a person will try to determine if a rise will occur within the next 60 seconds. While 60 seconds is mentioned, many traders will put their limit at a 120 seconds. The goal of this is to see a small rise and profit off of it. The problem is that normal accounts have to pay commissions. For the average trader, one or two pip will not provide enough of a return to actually be able to make a profit.
More on Scalping
Anyone that wants to try scalping can do so easily. The goal is to buy a pair, for instance the USD/EUR, and trade within two minutes. This may seem risky, and it is, but it is also risk cautious. The following points should be considered:
Gains: Small gains will be seen. Traders will need to trade in large volumes to see massive returns.
Losses: Losses can occur, but they are typically small in nature given to small amount of time allotted for a trade.
The goal is to make numerous trades fast in hopes of all these small amounts leading to major profits. The problem is, for a regular trading account, that commissions can make a profitable trade one that is not providing a return.
Islamic Trading Accounts
Islamic Trading Accounts truly benefit from this type of trading because there are no commissions made. This means that the account will not see the typical losses that the regular account would see with commissions. This allows the trader to reduce their overall risks and really make a run for gains.
The Gambling Debate
Many Arabic traders are skeptical of this kind of trading for one reason - gambling. When scalping, a trader is essentially gambling which would go against religious beliefs. Since the trader has no idea what will occur in the next few minutes, this is purely a gamble. However, this may not concern a person based on their own interpretation of the Quran.
Trading Amounts
Since risks are reduced, it is advised that the trader does larger trades at a time. This is done to negate any fees and to make a trade truly profitable. While many traders cannot risk thousands of dollars at a time, this is truly the only way to see massive returns with this strategy. Otherwise, more may be seen trading with the trends than with these fast transactions.
The 60 seconds scalping strategy is one that will take a little bit to get used to at first. If you do your due diligence, you will find that you can make a lot of money with scalping - but you must put a lot on the line.