Why do some brokers prohibit scalping? (conclusion) - page 2
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Scalping which involves making quick profits from going in and out of same positions used to be lucrative just as its prohibited partner hedging did. Then came the suspicious revelation that scalping provokes artificial volatility in the market. It is really sad, because scalping used to be one of those almost perfect strategies where you could be sure of returns.
Fundamentally, when you scalp, you only use small timeframes and make a lot of trades within a day to make lots of little profits - just a few pips. Position traders will have to undertake a lot of market analysis and preparation before starting a trade whereas a scalper just uses a single signal before they enter the market. He makes his profit and gets out just a few seconds later. What's more a position trader will keep their position open for many hours or days but scalpers will only have their positions left open for a few minutes, sometime seconds. Where this changes is that this will happen many time throughout a day.One disadvantage of this is that:the artificial volatility it prompts in the market, another thing is that there is no room for error with scalping.
scalping is very fun because with scalping we can benefit in a short time. with scalping we will be able to trade with maximal. but not all brokers allow to do scalping. But fortunately in instaforex allow for scalping
scalpng is the most popular and fastest generating strading style, but its also why most traders fail specially those who do not know what the are doing. scalping is allowed by most brokers even hotforex where i trade, but what is not allowed is arbitrage trading which is i think something under scalping.
Though Scalping is worldwide recognized trading strategy, therefore it is really bad that few brokers do not allow scalping trading. I do mostly like to perform Scalping because I can make huge profits in live trading doing scalping.