Are trading limitations as Scalping, FIFO, and Hedging performed by the broker?
Scalp is the name of a collection of strategies with take profit is lower than 10 Pips. Many brokers do not accept this style of trading and others accept it just when your amount of investing in Scalp trading is little. Some brokers also call trading which is opened and closed quickly as Scalp, without considering your Pips’ profit, and omit it from your trading history. There is no special standard for the minimum amount of allowed Pip or the minimum period of time for trading and these numbers are variable from one broker to another. Some brokers announce the minimum allowed amount of 3 or 5 or even 10 Pips and permit the minimum time period of 30 seconds, 1 or even 3 minutes for one trade.
Scalp is one of the popular methods for exiting from a trade with profit which is used by many traders, especially beginners. Strategies based on Scalp are highly risky for amateurs, and we never suggest them at Forecast City. However, if you have enough knowledge and experience to do such trades, select your broker very carefully and study all of the conditions for doing allowed Scalp trading in different brokerage houses accurately.
Although strategies based on Scalp are very dangerous, particularly for amateurs, there are also special strategies that can be ultra profitable when one learns them correctly and obtains enough experience using them. Teaching these strategies is a part of “secrets of ultra profitable trades” course. To learn more about Forecast City Academy, please refer to “Academy” section.
FIFO is the acronym for First In-First Out and means that the first opened trade should be the first trade which will be closed. In other words, you are not free to close trades in any order you want, but rather you have to close them in the order of their opening. As a result, it is difficult to trade in such brokerage houses.
This limitation is applied by brokers who are in the USA or who got their license from this country. So, if you are not a US citizen, it is better to select a brokerage house which is not located in the USA and that does not apply this limitation.
Hedge called to the open trade in the opposite side of other opened trades in one symbol. For example; if you have bought 1 Lot in the EUR/USD chart and open a new selling trade with 0,4 Lot before closing from the first trade by selling, then it means you have Hedged 0,4 Lot of your first buying trade. In this manner, if the price of EUR/USD decreases, the profit of your selling trade will increase while the profit of your buying trade simultaneously diminishes.
Hedge is one of the capital managing methods for midterm and long term trades. The intelligent managing of Hedge is a part of “secrets of ultra profitable trades” course. To learn more about Forecast City Academy, please refer to “Academy” section.
Regretfully, there are some brokers who are in the USA or who got their license from this country who do not allow you to do such trades. Therefore, trading in these kinds of brokerage houses is not easy. So, if you are not a US citizen, it is better to select a brokerage house that is not located in the USA and that does not apply such limitation.