- 01 Feb 2023, 15:56
#1411
Scalping is a popular trading strategy among Forex traders where the aim is to make small, rapid trades that generate quick profits. However, not all Forex brokers allow scalping. There are several reasons for this:
- Scalping requires high-frequency trading and creates significant market volatility. This can disrupt the smooth functioning of the market and put stress on the broker's systems and infrastructure.
- Scalping can put traders at a higher risk of incurring significant losses if their trades go wrong. This can also lead to negative balances on the trader's account.
- Scalping can also lead to a more significant number of disputes between traders and brokers, which can damage the broker's reputation.
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