Forex scalping is a popular trading strategy among traders who want to make quick profits by entering and exiting trades within a short period. This strategy involves opening and closing positions multiple times throughout the day, with the aim of profiting from small price movements. However, the forex market is not always open, and sometimes traders may want to scalp forex during non-market hours. In this article, we will explore how to scalp forex during non-market hours.
What are non-market hours?
The forex market is a 24-hour market that operates five days a week. However, there are times when the market is closed, and these are known as non-market hours. Non-market hours occur during weekends, holidays, and outside the trading hours of major financial centers. During non-market hours, the market is less liquid, and the spreads are wider, making it more challenging to scalp forex.
Scalping forex during non-market hours
Scalping forex during non-market hours can be challenging, but it is not impossible. Here are some tips on how to scalp forex during non-market hours.
1. Identify the best time to scalp
Although the forex market is closed during non-market hours, there are still some times when the market is more active than others. For example, if you are trading the USD/JPY pair, you may want to scalp during the Asian session when the Japanese market is open. Similarly, if you are trading the EUR/USD pair, you may want to scalp during the European session when the European markets are open. By identifying the best time to scalp, you can increase your chances of making profits.
2. Use a forex robot
During non-market hours, the market is less liquid, and the spreads are wider. This makes it more challenging to scalp forex manually. However, you can use a forex robot to scalp forex during non-market hours. A forex robot is an automated trading system that uses algorithms to enter and exit trades based on certain criteria. By using a forex robot, you can scalp forex during non-market hours without having to monitor the market constantly.
3. Trade on news events
Although the forex market is closed during non-market hours, news events can still impact the market. By trading on news events, you can scalp forex during non-market hours. For example, if there is a major news event that affects the USD, you may want to scalp the USD/JPY pair during non-market hours. By doing so, you can take advantage of the price movement caused by the news event.
4. Use a wider stop loss
During non-market hours, the spreads are wider, and the market is less liquid. This means that price movements can be more volatile, making it more challenging to scalp forex. To mitigate this risk, you may want to use a wider stop loss. By using a wider stop loss, you can give your trades more room to breathe, reducing the likelihood of getting stopped out.
Conclusion
Scalping forex during non-market hours can be challenging, but it is not impossible. By identifying the best time to scalp, using a forex robot, trading on news events, and using a wider stop loss, you can increase your chances of making profits. However, it is important to remember that trading during non-market hours comes with additional risks, and you should always trade with caution.
