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Forex Terms
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S/ SA SC SE SH SI SL SO SP SQ ST SU SW
SCA

Scalping (Forex trading)

1. a legitimate method of arbitrage of small price gaps created by the bid-ask spread.

2. a legitimate method of currency trading based on quick momentum trades triggered by order flow reading setups.

3. a fraudulent form of Forex market manipulation.

A Forex trader who trades currency in this fashion has been nicknamed a "Scalper" because these traders attempt to take small spread differences between the Bid and Ask price. "Forex Scalpers" do not enter positions and carry them overnight. Scalping is a fast-paced trading where a Forex trader seeks 1-5 pips profit from each trades.

Many Forex brokers do not like scalpers.
Here you can find a list of Forex brokers, that formally allow scalping.

 

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