Is Scalping Accepted By Forex Brokers

Forex trading has become excessively famous over the last few years. Traders from all across the globe seem to be more interested in Forex trading than any other investment opportunity. Although Forex trading has sound potential to bring traders healthy profits over a short period of time, still there is a risk that traders may end up losing all or major part of their investment in all of a sudden. This happens when the market changes abruptly. Due to this fact, traders use different Forex strategies, tips, and techniques, so they can prevent their account from incurring losses. At the same time, there is a group of traders who tend to be risk-averse. They prefer small quick profits and won’t mind waiting a little longer for their profits, to sum up into a big total.

Coming back to our topic of debate, we would like to mention that, Yes! Scalping is accepted by many Forex brokers all around the world. However, not all brokers support scalping. Usually, these are the ECN brokers who allow their clients to use scalping on their platform. ECN brokers are considered to be the favorite to use scalping techniques because of various factors such as instant trade execution, high trading volume helping scalpers to earn more by entering and exiting a large number of trades, and of course no slippage environment.

On the other hand, Market Maker brokers do not support scalping. The reason could be the operational structure of market makers since they make money through spreads – a commission-free Forex trading or by means of betting against a trader as whenever a trader loses, the broker wins. By allowing scalping, it may become very difficult for market makers to earn money since scalpers don’t leave their trades open for a long time. Ultimately, it is less likely that traders lose any trade, this makes market makers to suffer loses. So they (market makers) do not allow scalping.

Let us put some light on “Scalping” as well, so you can have a better understanding of what is scalping and how does it work?

What Is Meant By Scalping In Forex Trading?

It’s a famous trading method that traders use to earn smaller but quick profits. Using this technique traders open their positions with relatively short expiry timings that usually doesn’t exceed 5 minutes. This is how traders avoid the possible loss that could have arisen due to the market uncertainties if those positions were left open. Scalpers seem to be following the approach of a farmer who believes that it is better to have one bird in the hand than to wait for ten in the bush. Scalpers prefer short profits with their trades being closed earlier then to wait longer to have big profits. In other terms, scalpers don’t risk their trades to get affected by the uncertain behavior of the market in hope of big returns.

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What To Look For When Choosing a Forex Broker If You Intend To Use Scalping?

Mentioned below are some important bits that you need to consider before you open an account with a Forex broker especially if you are a scalper.

Regulation

The most important factor that traders are usually concerned about is the regulatory status of a Forex broker. If a broker is regulated that means your investment is safe. Obviously, no traders would ever wish to compromise the security of their funds. Regulation makes brokers follow certain rules and procedures and providing security to client’s investment is one of those rules. So you must not open an account with a broker that is unregulated.

Broker’s Policy Concerning Scalping

You need to make sure that the broker you are going to open an account with, allows scalping. This is very important if you intend to use scalping technique. Usually, you may find a broker mentioning clearly that it does or doesn’t support scalping. However, sometimes, the brokers tend to play smart and do not mention anything concerning scalping then, later on, they simply make you barred from doing scalping.

Broker’s Jurisdictional Limitations

Jurisdictional implications are also important while selecting a Forex broker for scalping. Sometimes, brokers don’t mind traders to use scalping techniques but they are not allowed to offer scalping by their respective regulatory bodies.

Type of Broker ECN or MM

As stated earlier, that ECN brokers are considered scalping friendly. So you must know what is the type of the broker you are about to sign up. If it’s a market maker broker then you may reconsider your choice. Remember, charging pattern of market maker brokers goes totally against scalping techniques. You cannot be allowed to use scalping if you open an account with market makers.

Rate of Trade Execution

Scalping requires speedy trade executions. You need to make sure that your prospected broker is good enough to offer you fast trading execution because exact prices can make the difference between a profit and a loss. You simply cannot afford delayed trade execution.

Executive Coaching Leadership Versus Management

Executive coaching can help to determine whether you are more of a leader or more of a manager and assist in gaining the insight and self-confidence that comes with knowing more about yourself. The result is greater impact and effectiveness when dealing with others and running your business.
We are going to take a look at the executive coaching techniques in assessing the different personality styles in leadership versus management, the attitudes each have toward goals, their basic conceptions of what work entails, their relationships with others, and their sense of self (or self-identity) and how it develops.

Last of all, we will examine leadership development and discover what criteria are necessary for leaders to reach their full potential.

Executive Coaching Technique 1: Look at the difference in personality styles between leadership versus management.

Managers – emphasize rationality and control; are problem-solvers (focusing on goals, resources, organization structures, or people); often ask question, “What problems have to be solved, and what are the best ways to achieve results so that people will continue to contribute to this organization?”; are persistent, tough-minded, hard working, intelligent, analytical, tolerant and have goodwill toward others.

Leaders – are perceived as brilliant, but sometimes lonely; achieve control of themselves before they try to control others; can visualize a purpose and generate value in work; are imaginative, passionate, non-conforming risk-takers.

Executive Coaching Technique 2: They have very different attitudes toward goals.

Managers – adopt impersonal, almost passive, attitudes toward goals; decide upon goals based on necessity instead of desire and are therefore deeply tied to their organization’s culture; tend to be reactive since they focus on current information.

Leaders – tend to be active since they envision and promote their ideas instead of reacting to current situations; shape ideas instead of responding to them; have a personal orientation toward goals; provide a vision that alters the way people think about what is desirable, possible, and necessary.

Executive Coaching Technique 3: Conceptions of work.

Managers – view work as an enabling process; establish strategies and makes decisions by combining people and ideas; continually coordinate and balance opposing views; are good at reaching compromises and mediating conflicts between opposing values and perspectives; act to limit choice; tolerate practical, mundane work because of strong survival instinct which makes them risk-averse.

Leaders – develop new approaches to long-standing problems and open issues to new options; first, use their vision to excite people and only then develop choices which give those images substance; focus people on shared ideals and raise their expectations; work from high-risk positions because of strong dislike of mundane work.

Executive Coaching Technique 4: Managers and leaders have very different relations with others.

Managers – prefer working with others; report that solitary activity makes them anxious; are collaborative; maintain a low level of emotional involvement in relationships; attempt to reconcile differences, seek compromises, and establish a balance of power; relate to people according to the role they play in a sequence of events or in a decision-making process; focus on how things get done; maintain controlled, rational, and equitable structures ; may be viewed by others as inscrutable, detached, and manipulative.

Leaders – maintain inner perceptiveness that they can use in their relationships with others; relate to people in intuitive, empathetic way; focus on what events and decisions mean to participants; attract strong feelings of identity and difference or of love and hate; create systems where human relations may be turbulent, intense, and at times even disorganized.

Executive Coaching Technique 5: The Self-Identity of managers versus leaders is strongly influenced by their past.

Managers – report that their adjustments to life have been straightforward and that their lives have been more or less peaceful since birth; have a sense of self as a guide to conduct and attitude which is derived from a feeling of being at home and in harmony with their environment; see themselves as conservators and regulators of an existing order of affairs with which they personally identify and from which they gain rewards; report that their role harmonizes with their ideals of responsibility and duty; perpetuate and strengthen existing institutions; display a life development process which focuses on socialization…this socialization process prepares them to guide institutions and to maintain the existing balance of social relations.

Leaders – reportedly have not had an easy time of it; lives are marked by a continual struggle to find some sense of order; do not take things for granted and are not satisfied with the status quo; report that their “sense of self” is derived from a feeling of profound separateness; may work in organizations, but they never belong to them; report that their sense of self is independent of work roles, memberships, or other social indicators of social identity; seek opportunities for change (i.e. technological, political, or ideological); support change; find their purpose is to profoundly alter human, economic, and political relationships; display a life development process which focuses on personal mastery…this process impels them to struggle for psychological and social change.

As you can see, managers and leaders are very different animals. It is important to remember that there are definite strengths and weaknesses of both types of individuals.

Managers are very good at maintaining the status quo and adding stability and order to our culture. However, they may not be as good at instigating change and envisioning the future. On the other hand, leaders are very good at stirring people’s emotions, raising their expectations, and taking them in new directions (both good and bad).

However, like artists and other gifted people, leaders often suffer from neuroses and have a tendency toward self-absorption and preoccupation.
If you are planning on owning your own business executive coaching can help you to develop management skills. However, what do you do if you believe you are, in fact, a leader – a diamond in the rough? What can you do to develop as a leader?

Throughout history, it has been shown again and again that leaders have needed strong one-to-one relationships with teachers whose strengths lie in cultivating talent in order to reach their full potential.

If you think you are a leader at heart, find an executive coaching professional – someone who you can connect with and who can help you develop your natural talents and interests.

Whether you reach “glory” status or not, you will grow in ways you never even imagined. And isn’t that what life is about anyway? So what do you aspire to improve in? How do you compare leadership versus management?
The choices between leadership versus management are profound, and both are highly valuable to a strong organization.