What is scalping?

[phildunn]

In the agreement of my FOREX broker, I found this clause:

e) No Scalping: Trader agrees and acknowledges that the service provided by to Trader hereunder is not adapted for trading techniques commonly known as "scalping" or "picking" ("Scalping"). In the event of Trader employing the Scalping techniques, Trader agrees and acknowledges that may in 's sole discretion take one or more, or any portion of, the following actions: (i) close Trader's account; (ii) suspend Trader's account for an indefinite period of time; (iii) carry out an investigation on Trader's account for an indefinite period of time; (iv) charge a penalty fee to Trader in the same or greater amount of money that resulted from Trader using Scalping techniques.

What is scalping actually?

[TraderABC]

Originally Posted by phildunn

In the agreement of my FOREX broker, I found this clause:

e) No Scalping: Trader agrees and acknowledges that the service provided by to Trader hereunder is not adapted for trading techniques commonly known as "scalping" or "picking" ("Scalping"). In the event of Trader employing the Scalping techniques, Trader agrees and acknowledges that may in 's sole discretion take one or more, or any portion of, the following actions: (i) close Trader's account; (ii) suspend Trader's account for an indefinite period of time; (iii) carry out an investigation on Trader's account for an indefinite period of time; (iv) charge a penalty fee to Trader in the same or greater amount of money that resulted from Trader using Scalping techniques.

What is scalping actually?

It is potentially the most profitable strategy. You are in and out of the trade in matter of minutes or seconds taking few pips, often using many lots at a time.

Who is that broker?

[phildunn]

Originally Posted by TraderABC

It is potentially the most profitable strategy. You are in and out of the trade in matter of minutes or seconds taking few pips, often using many lots at a time.

Who is that broker?

Why they prohibit scalping? They will earn more if we trade more, wouldn't it? I know broker earn commission from spreads.

The broker I mentioned is a new forex broker, Marke tiva that give u free $5 to open an account.

[BullMarket]

5$ huh? Nothing is ever free and no scalping? what a joke! Don't give them a second thought. check out CMS FX my broker or O A N D A.

5 bucks they can take that 5 bucks roll it in a tight little ball and shove it up their....

-Frank

[mahmode]

check out CMS FX my broker or O A N D A

Do you mean CMS FX and O A N D A allow scalping ?

[BullMarket]

I've never acctually read the fine print, with O A N D A but, I gone thourgh their site and they make no mention of not allowing scalping and I actively scalp CMS FX.

Scalping is hard to define. I think that it's intraday trading. Where no position is held over night. Others define it as taking many high probability trades during the day for at a 1:1 risk ratio that last for only minutes. And still others define it as taking advantage of the devations in the bid/ask spread that last moments.

The last would only work if you were an insider and payed little or no commission.

I think the site in question dosn't want scalping due to the traffic it would cause. It would slow their crappy bucket shop servers to a crawl and people would miss orders and get requated like crazy. If they already arn't.

I'd steer clear of theres guys.

-Frank

[Ray G]

I'm pretty much on board with the last comment. Scalping is hard to define as it seems everyone has it a little different.

I think what the anti-scalping brokers are against is the one or two minute trades.

Most people tend to think I scalp but my average trade is probably more like 10 to 30 minutes though I do have my 2 minute trades sometimes.

Refco hasn't pulled my plug yet, though I have heard nothing but good things about O A N D A.

And why do we have to do that? Why are some companies banned like that?

The only thing with the aforementioned broker, is that you get less of a margin. If you're trading a full account though and not a mini, that shouldn't be a problem.

[cyberwave]

Originally Posted by phildunn

Why they prohibit scalping? They will earn more if we trade more, wouldn't it? I know broker earn commission from spreads.

The broker I mentioned is a new forex broker, Marke tiva that give u free $5 to open an account.

This is exactly what i am talking about

brokers do not make there money from spreads,...they take your position after u dump it and keep it open for them,...then they close it when they win from it,..in scalping maybe it is hard for them to do that for some reason