Monday, September 24, 2007

Cons of Forex Scalping

Among the strongest cons of Forex scalping is the fact that Forex brokers in their majority do not like scalpers. And, although Forex scalping is absolutely legal, a true Forex scalper can find him/herself “asked” to change a broker or change his/her trading habits to continue trading at current place.

These restrictions on scalping in Forex are posed because no brokers are willing to lose their additional profits which they make when traders happen to be in a losing position. Actually, there is kind of controversy here, because scalpers do make money for brokers, as each time trader enters a trade he pays the spread and only then starts earning money.

Additional cons of Forex Scalping lie in the fact that scalpers need to use higher leverage in order to make higher profits. However, this also means higher risks in trade.

Is Forex scalping so useless? No. There are serious pros which make it look very appealing to many Forex traders. In addition, for some traders it has become the only way to trade in Forex and make good profits.

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