Scalping is prohibited ny Brokers?

Discussion in 'Forex Brokers' started by phildunn, Aug 28, 2005.

  1. phildunn


    It is the reply email I received from Marketiva support after I submitted inquiry about scalping.

    "After I read the service agreement carefully, I found a clause
    about scalping. I am new in FOREX trading and would like to know
    what is scalping and why you prohibit it? What is scalping
    actually? Is it a hacking technique?"

    Scalping is so distinctive technique that there is no chance you will be
    applying it, if you do not know what it is. We will not explain you that,
    since I will be teaching you an illegal technique on our platform. You can
    always go to Google and find definition and forums that discuss that.

    We provide our services, with that limitation: no scalping. If someone one
    wants to use scalping, that is OK, but it cannot be on our platform. Simple
    explanation: there is no way we can execute scalping orders with our
    counterparties. All other dealers in the world do not allow that, the only
    difference is that we are fair and we say that in advance. There are
    techniques that a dealer can use to crush a scalper in one position only. We
    simply do not want to do that - we do not want to go into that mud.

    If you need more information, please do not hesitate to contact us.

    Kind Regards,

    David Persena
    Dealing Specialist
    Marketiva Corporation

    What's your opinion about this broker? Are they doing right thing by prohibiting scalping? :confused:
  2. It's obvious they make their money off the spread... look elsewhere...
  3. na na, it's not that, Brother Candy, it's in the definition of "scalping."

    they don't mean "scalping" like where you go in and pick off 2 points or 4 points then you're out of the market again.

    what they mean by "scalping" I think is also called "arbitrage" - a definition - just that some brokers call it "scalping."

    so it's OK to "scalp," the rapid open then close of a trade where you go in and pick off a few pips at a time over and over again, though some brokers' platform cannot even handle that quick of a trade.

    only one that I know of.


  4. Its funny I guess it confirms what others have posted, the people that were making money here were undoubtedly scalping somehow and their brokers shut them down.. funny. now learn how to stop trading for .0001s.