Scalping Technique

[mumuy]

Dear All,

I have this question regarding the Scalping technique. From the customer's agreement it states that the scalping technique is not allowed by fxopen.
What do they mean?

Correct me if i m wrong....scalping technique is a trade technique that closes an order within a few minutes??

For eg. when I Buy or sell a currency and i set my take profit after it increases or decreases by 10 pips.

I believe this will be achieved within a few mins or maybe even faster (assume the trend is according to our order placed).
So is this considered scalping?

if so, please explain in more detail regarding this issue that otherfx brokers disallow scalping.

Thanks!

 

[Enivid]

Yes, you are right about scalping definition. Many brokers forbid it as it may take advantages of their pricing algorithm's flaws.

 

[Fxpipper]

As enivid stated, not all brokers allow scalping for that reason however some do permit scalping, so if you're into it, you need to review the list of brokers to find out whether they permit it or not.
On the definition, yes that's it and usually, only advanced traders opt for scalping.

 

[BlindFA]

You should ask this in the brokers section of this forum, I'm sure a representative could inform you!

That said, many (most) brokers allow scalping. Make sure you verify before opening an account.

 

[jayditcher]

I wish I had known about this. There are lots of techniques in trading that are not known and brokers dont prefer to tell them either.

 

[michael77]

Yes, you are right. If you open trade only for couple of minutes and if you would able to earn 1-19 pips within that time then it is called scalping. Timeframe like M1, M5, M15 are very much useful for the scalpers. You also need to make sure that your Broker Forex allows scapling as there are lot of Broker Forex do not allow scapling.