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What do brokers consider scalping?

  • Post #1
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  • First Post: Oct 18, 2006 2:53pm Oct 18, 2006 2:53pm
  •  thepunisher
  • | Joined Oct 2006 | Status: Member | 27 Posts
Hi all,

What do brokers consider scalping? Say if I open a trade at 119.03 and then after an hour close it at 118.98 is that scalping?
  • Post #2
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  • Oct 18, 2006 4:53pm Oct 18, 2006 4:53pm
  •  Bucky
  • | Joined Oct 2006 | Status: Member | 1 Post
It seems to vary by who you take to or what thread you read. I think generally it is taking small profits in a short period of time. It also seems that this is a practice that some brokers frown on. However, I have read no accounts of an account being closed for it. If true, it may be a case of how many trades you place.

In general, small pips around 5 in one day on one trade would seems to be scalping. I have also heard this could be as high as 10 pips.
This does not seem to be tied to the lot size however.

Quoting thepunisher
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Hi all,

What do brokers consider scalping? Say if I open a trade at 119.03 and then after an hour close it at 118.98 is that scalping?
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  • Post #3
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  • Last Post: Oct 27, 2006 7:22am Oct 27, 2006 7:22am
  •  blueshift
  • | Joined May 2006 | Status: Member | 225 Posts
If you keep your positions open for less than 5 minutes, it's considered scalping by many brokers.
 
 
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