What is scalping?

[phildunn]

When I tried to ask my FOREX broker, Marke tiva in their live support today what is scalping and why they prohibit it, they don't want to answer my question and just tell me go to search in google!!! They said they won't tolerate with any scalping traders. I just want to ask them about it but they suspect me I am scalping!!!

[phildunn]

It is the reply email I received from Marke tiva support after I submitted inquiry about scalping.


"After I read the service agreement carefully, I found a clause
about scalping. I am new in FOREX trading and would like to know
what is scalping and why you prohibit it? What is scalping
actually? Is it a hacking technique?"

Scalping is so distinctive technique that there is no chance you will be
applying it, if you do not know what it is. We will not explain you that,
since I will be teaching you an illegal technique on our platform. You can
always go to Google and find definition and forums that discuss that.

We provide our services, with that limitation: no scalping. If someone one
wants to use scalping, that is OK, but it cannot be on our platform. Simple
explanation: there is no way we can execute scalping orders with our
counterparties. All other dealers in the world do not allow that, the only
difference is that we are fair and we say that in advance. There are
techniques that a dealer can use to crush a scalper in one position only. We
simply do not want to do that - we do not want to go into that mud.

If you need more information, please do not hesitate to contact us.

Kind Regards,

David Persena
Dealing Specialist
Marke tiva Corporation

What's your opinion about this broker? Are they doing right thing by prohibiting scalping?

[cyberwave]

Originally Posted by phildunn

When I tried to ask my FOREX broker, Marke tiva in their live support today what is scalping and why they prohibit it, they don't want to answer my question and just tell me go to search in google!!! They said they won't tolerate with any scalping traders. I just want to ask them about it but they suspect me I am scalping!!!

So companies tell there clients basically if you try to win money we will suspend your account ?

[cyberwave]

Originally Posted by phildunn

There are
techniques that a dealer can use to crush a scalper in one position only. We
simply do not want to do that - we do not want to go into that mud.

so brokers are actually on the other end of the trade trying to crush us ?

i might as well give my broker my earnings every month without trading with it,..will save me a lot of blood pressure then

[phildunn]

Here is the received email from my broker, Marke tiva about short term trade.



"Can I keep my positions just in few seconds? Is there any limitation on
minimum time you must keep your positions open?"

There is no minimum of time how much position has to be on the market.

When you see that the position has status opened, you may close it.
Thank you for your interest in our services and please don't hesitate to ask
anything!

Kind Regards,

Kevin Baylay
Account Manager
Marke tiva Corporation



So it is clearly that the definition of scalping from brokers is not about short term trade. It is just a misunderstanding between traders and brokers.

[dude007]

I started scalping 3 days ago without knowing that it was not allowed. I made over 50 trades in 1 day but overall making a loss in my account for which NOTHING happened. Then yesterday i made 109 pips profit for which i received a email telling me that its not allowed and charged me a sum. From what i notice if u make a loss they dont make a fuss but if u make a profit they do which makes me think R THEY ROBBING US.

If you want to scalp u shouldnt make it obvious. Heres a few pointers to keep urself safe..........

Try to limit your trades to under 10 trades a day keeping them over a few minutes long. From what i found out today its not good to make trades which lasts seconds but if they last a few minutes it should be ok.

Spread your small trades through out the day. Dont just trade all 10 trades at once. Try trading 2 trades at a time and leave a few hours before u make another few trades n so on....

Dont use a small unknown broker. Try using well known brokers with small spreads such as CMS, etc.

[Ray G]

In the future, if we could all give the various brokers' names that we're talking about, it would be most beneficial to everyone.

The last two weeks have been real choppy for some reason, at least when I'm trading, and so my trades have been shorter on average; probably about 2 to 5 minutes.

Usually, in more normal markets, my average will be more; something like 15 to 20 minutes.

Sounds counterintuitive, but I'm not willing to leave myself exposed in a choppy, extremely unpredictable market (more unpredictable than usual).

So far, profit or loss, I haven't had any grief for scalping, and my broker is Refco.

[T4fast]

Originally Posted by phildunn

"Can I keep my positions just in few seconds? Is there any limitation on
minimum time you must keep your positions open?"

I guess they will just monitor it, for repatative cases.
and the mis-understanding doesnt exist.

But to charge you for something, there should be a clear rule.
Ask them to define it in numbers and percentages.

And google did define GENERALLY sclaping, but it doesnt state the rules used by this #%$@$* broker.