Well, FXCM staff has implied it clearly enough. They won't straight up say it, but I know that it is true, at least from their perspective, and from reading comments from many members on this forum, that it appears that scalping on the forex market by MANY brokers is "frowned upon" So that is exactly what I'm saying.... why do you ask such an obvious question? Oh, and not only that, but FXCM takes measures within the platform to make sure you don't scalp. For example, stop orders being forced to be placed out of a range of any possible "scalping" possibility. That's just one of the ways. But, I don't care, I don't trade Forex, and I never will again unless there is someway that I'm protected. That is fact, and a risk I can't take with my money. Regardless, good luck to all of you on your trading adventure into the unregulated and unprotected land of Forex, prepare to have your brokers screw you in so many ways possible, yet you will not even notice
First, I agree with you regarding FXCM and do not doubt any of your negative experiences with them. I would encourage you to explore another broker. My broker cheerfully allows scalping, and trading of any kind (except intentional arbitrage that some brokers refer to as "scalping" though the meaning is not the same as when I "scalp"). The other definition of "scalping" (arbitrage) is not allowed anywhere, but it is NOT taking a point a two with rapid trades 100s of times over again, that is, scalping. As I indicated, there are two conflicting definitions commonly referred to as "scalping." Good luck, and don't give up on forex, just switch brokers! x
Or trade currency futures. Scalp all you want there. Less counterparty risk, and fewer ways for the broker to screw you.
It still seems confusing. Do I basically have to predict both markets. If I'm buying the euro and selling the dollar, what if the dollar and euro both appreciate, can this happen?? Is everything basically paired off of the dollar can I pair the peso with the swiss franc. All in all does currency trading work the same as stocks and futures...are you basically just going long or short? Thanks for the advice.
If Eur appreciates against the dollar it means that people(banks) will need more dollars to buy 1 eur. If you believe that eur will appreciate against the dollar you want to buy eur/usd pair. If you believe that eur will depreciate against the dollars meaning people(banks) will need less dollars to buy 1 eur then you are selling eur/usd pair. It works exactly the same way as in the futures. Currency is just another commodity.