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Scalping and trade nullification

Discussion in 'Beginners Bootcamp' started by Brendan Wood, Mar 31, 2009.

  1. Brendan Wood

    Brendan Wood Recruit

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    Hi, I am new to trading and I am curious about scalping...

    Is it only bucket shops who do not allow this practice? Also, what is classified as scalping? I want to be able to open a trade anywhere from1 minute to a few days, not have my trades nullified when I try to withdraw my profits etc...

    If anyone can inform me of the details of scalping, also, how I can find out more about people who nullify their traders trades.

    I'm currently researching brokers and anyone who can give me info about good brokers, that would also be greatly appreciated.

    Thanks everyone
     
  2. Cesil

    Cesil Private, 1st Class

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    I've never been requoted. 90% of my trades are probably classified as ''scalping'': in & out in less than an hour, often less than 10 minutes & for less than 50pips. Maybe because the other 10% of my trades stand for a week to several months, they leave me alone (I trade with Saxo).

    Dunno. Seems to be a real problem with many other brokers though from what I've read on these forums.
     
  3. Pharaoh

    Pharaoh Colonel

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    Different brokers have different definitions of scalping. They have different minimum times and/or minimum pip values. Most brokers who prohibit scalping define it as trades lasting from a few seconds to a few minutes, but some stretch this as long as 15 minutes.

    ALWAYS read all the agreements before opening an account with a broker. If you break clearly defined brokerage rules, then don't run off screaming "Scam" later. If the broker doesn't define the rules clearly, demand a clear and binding explanation. If they won't provide one, don't risk opening an account with them.

    Don't wait until you've traded for months and months profitably and only then try to withdraw. Pull some money out every now and then. If the broker decides to pull your plug, at least you will have gotten something for your efforts.
     

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