Question
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How is liquidity dependent on scalping or vice versa?
1 Answer
<p id="isPasted">Scalping relies on liquidity, such as one of the most traded fx pair “EUR/USD” while pending orders flow in and out in large numbers, generally resulting in more limited and better spreads. That means you can execute trades quickly, and with minimal slippage that aggravating gap between the price you want and the one you get. And high liquidity maintains tight bid-ask spreads, so you’re not losing too much in transaction costs. It’s a recipe for making profits on those little moves.</p><p><br></p>