OANDA is suitable for short-term trading, whether scalping, day trading or swing trading, for the following reasons。

OANDA is a well-known broker among international forex traders for novice and professional traders。OANDA is known for providing trusted currency data and innovative proprietary trading platforms through fxTrade, but potential customers may wonder if OANDA is suitable for specific trading methods, such as scalping and day trading。In this article, we will delve into the advantages and disadvantages of OANDA for short-term trading。

What is short-term trading?？

Short-term trading is a popular way of trading that seeks to open and close trades in a short period of time (usually days or weeks), with as short a time span as possible, and common short-term trading options are scalping, intraday trading and swing trading.。

1. Scalp trading is a very short-term scenario where traders can open and close positions in seconds or minutes。In a typical trading day, scalpers often make hundreds of trades in the hope of turning small gains into sizeable profits。
   Day trading is the most common form of short-term trading, where traders will buy and sell a variety of instruments throughout the day to close all open positions before the market closes.。This prevents them from holding positions overnight, saving on swap (rollover) costs。
   Swing trading is a short- to medium-term scenario that requires holding open positions for days or weeks.。Volatility traders will determine whether an asset has potential for future profitability by looking at the volatility highs and volatility lows of its price (possibly through a combination of technical analysis and fundamental analysis)。

Long-term trading strategies seek to generate constant returns over a longer period of time, while short-term trading focuses on the volatile price behavior of financial instruments for quick profits。As a result, short-term trading is seen as a more speculative type of investment than traditional buy-and-hold strategies。

Retail and institutional traders looking for quick profits from small price changes are particularly fond of this type of trading.。However, short-term trading is not suitable for all types of trading instruments and requires a more stringent trading environment.。

Here are some of the necessary things to apply the best short-term trading strategy:

1. Derivative financial instruments such as foreign exchange and CFD
   Cheap fees, small spreads, low commissions
   High leverage (margin trading)
   Low latency and / or fast order execution
   Low or even no slippage

In addition to this, scalpers must confirm with the broker if they can open and close positions within minutes, and OANDA allows scalping to trade。

OANDA for short-term trading

There is no denying that OANDA is suitable for short-term trading, whether it is scalping, day trading or swing trading.。Traders on online forums such as Forex Factory have mentioned that they can even open and close positions in seconds。One-click trading enables traders to send orders as quickly as possible and get instant execution。

OANDA has slippage, but adopts a fair slippage policy, according to which traders may experience slippage in their favor or disadvantage。This is good news for short-term traders as some other brokers only offer negative slippage to traders。

OANDA offers two types of trading platforms: the proprietary fxTrade and the more popular Metatrader, both available for desktop and mobile devices, equipped with advanced charts and multiple trading tools。OANDA's proprietary mobile app is very satisfying for people who like to trade anytime, anywhere.。

How about transaction fees？OANDA offers two pricing options for more than 100 trading instruments, namely spread only and commission plus core spread。Core spread from 0.$40 commission for every $1 million traded from 1。

Leverage is the only drawback OANDA short-term traders have to deal with。OANDA's U.S. branch is managed by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). The leverage ratio of major currency pairs is limited to 50: 1, and the leverage ratio of all other currency pairs is limited to 20: 1, which is much lower than other international brokers.。

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OANDA offers 5-digit accuracy quotes and active price movements that follow market developments, as well as a very rapid execution speed.。Unlike brokers that use other lots, OANDA provides a thoughtful service to novice traders because it can use a currency value-based calculation system for smaller trading volumes。

OANDA was founded in 1996 by Dr. Michael Stumm, Lecturer in Computer Engineering at the University of Toronto, Canada, and colleagues at The Olsen Ltd, one of the leading econometric research institutes..Co-founded by Dr. Richard Olsen and headquartered in San Francisco, USA。

OANDA branches can be found everywhere, some in the UK, Singapore, Japan and Canada。With the distribution of the number of offices, OANDA increasingly attracts the attention of global customers。

OANDA's companies are registered in a number of well-known jurisdictions in the field of financial transactions and are regulated by the US CFTC and NFA, the UK FCA, and ASIC Australia.。Traders no longer need to worry about security when trading at OANDA, and these advantages make OANDA's trading rules more stringent than other brokers。

For example, OANDA only allows a maximum leverage of 1: 20 because U.S. and Japanese regulations do not allow higher leverage than that。In addition, the registration process will be more complicated as other forex brokers do not have various additional requirements。Please note that OANDA does not allow hedging in the same trading account, so another account must be opened。

Nevertheless, OANDA is known as a leading broker and offers many advantages。OANDA faces greater market risk during periods of price volatility, such as economic and political news announcements。When market spreads increase or decrease, the pricing engine expands or reduces spreads accordingly。In this way, traders can be more quickly updated on market price movements。

Especially when news releases have a significant impact on market volatility, prices in the market can move very quickly。Brokers often serve their clients by re-quoting at this time, however traders do not have to worry about additional fees when trading with OANDA。

OANDA never withdraws re-quotes, so traders get maximum profit。When traders cannot monitor open positions, they can set take profit orders to lock in profits and stop loss orders to help prevent further losses。

As an experienced and well-known online forex broker, OANDA is committed to maintaining an efficient trading environment, reducing latency and providing tools to help clients manage acceptable slippage。

With OANDA's fast and reliable platform, trading is possible at 0.Execute in 012 seconds, suitable for traders who prefer execution speed。

As a result of this thoughtful service, OANDA has won many awards, including the world's best retail foreign exchange platform award in the prestigious e-FX awards, and was also ranked first in terms of consistency, execution speed and platform reliability in executing transactions on quote。

There are no minimum deposit or minimum balance requirements for opening an OANDA account。OANDA offers multiple payment methods, including Paypal, wire transfer, credit and debit cards, which traders can adjust to the region they live in。

OANDA offers more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent, copper, corn, natural gas, soybeans, sugar, etc.), 6 bonds and 23 metals.。

The fxTrade and MetaTrader platforms are available on OANDA for desktop and mobile devices and have OANDA technical analysis services in collaboration with Autochartist technical analysis providers。

With these platforms, customers can more easily monitor price movements and automatically identify patterns created on charts and receive notifications when waiting patterns appear. The technology is free to try。

In short, OANDA is the ideal broker backed by years of experience, fast execution, and is a good choice for those looking for a broker with good regulation and flexible trading and deposit conditions.。