You'll have to read the contracts to determine what is (or might be) scalping. If the contract is not clear, ask them for clarification in writing.
Scalping is a time frame thing - not a pip thing.
Ignored
yep. technically speaking, any trade less than 24 hours long is a scalp in forex. usually meant to be a trade that begins or ends within a trading session i.e. a trade taken after the US open and closed before the US close.
most legitimate brokers probably wont have a problem with ten pips. some will however so yeah, go with Pro's idea and look at the contract. if it isn't in the contract, try calling them up. if no one has any answers or doens't know, you'll be fine with a 10 pip tp. good luck!
Or find a new broker because that one is full of idiots... If a broker cant define what they think scalping is or is not, that is a bad thing...
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or it could just mean that they aren't concerned by it. scalping may not mean anything to them because they dont care. if they do give you a number and dont have any rules against scalping, that's just the guy on the phone's personal opinion. if he doesn't give you a number, it could be because he doesn't want to mislead a client.
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Joined Mar 2009
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Status: keep it simple stupid
|423 Posts
well, if you're trading with a bucketshop. then it might become a problem if u r profitable. they will try 2 get rid of u. if u lose, then they will love u like their own sons n daughters. because u r their payroll. lol
yep. technically speaking, any trade less than 24 hours long is a scalp in forex. usually meant to be a trade that begins or ends within a trading session i.e. a trade taken after the US open and closed before the US close.
most legitimate brokers probably wont have a problem with ten pips. some will however so yeah, go with Pro's idea and look at the contract. if it isn't in the contract, try calling them up. if no one has any answers or doens't know, you'll be fine with a 10 pip tp. good luck!
Ignored
Not to be too picky, but opening a position and closing it 20 hours later is not really considered scalping.
A scalping strategy tries to take only a few pips at a time in a very short time, i.e. 20m or less.
Making 3 or 4 trades in a day that last over an hour each would be considered day trading.
As you know, it typically goes:
Scalping
Day Trading
Swing Trading
Long Term Trading
In other words, scalping is a form of high frequency day trading. Day trading is simply lower frequency within the day.
Not to be too picky, but opening a position and closing it 20 hours later is not really considered scalping.
A scalping strategy tries to take only a few pips at a time in a very short time, i.e. 20m or less.
Making 3 or 4 trades in a day that last over an hour each would be considered day trading.
As you know, it typically goes:
Scalping
Day Trading
Swing Trading
Long Term Trading
In other words, scalping is a form of high frequency day trading. Day trading is simply lower frequency within the day.
Ignored
TECHNICALLY, as i said in my post, it is. you're right, in most trading forums and most education sites a trade that is 10-30 pips is a scalp. but in the pit or at institutions, a scalp is synonymous with a day trade, TECHNICALLY. you will still see some people make a distinction though. i'm talking about markets that have a definite open and close; markets that forex gets all it terms from. that is why i said TECHNICALLY instead of just saying a fact.
i don't know about the time threshold of scalping but i read at some brokers License Agreement that they would consider a trade scalp if you close it within 3-4 minute above that you will be fine and almost any major pair could cross 10-20 pips in 3-4 minutes.
So i guess this is differnt for different brokers.
