Thursday, January 17, 2013

Scalping with Yadix


Yadix provides a stable, reliable and beneficial forex trading environment for all forex traders, however, forex market scalpers truly understand the benefits and value that trading with Yadix delivers. This is the reason that Yadix has seen a dramatic growth in scalping forex traders recently.

Whilst many brokers promote the fact that scalping is allowed, the truth is that a real scalping forex traders will understand that the majority of forex brokers have certain limitations in place that means true scalping cannot be performed at these forex brokers and more importantly, effecting profitability or encouraging losses.

Some of these restrictions include minimum time limits that any specific order must remain open. Many forex brokers implement rules that ensure that orders must remain open for anything from two, three, five or even as much as 10 minutes. Many traders do not understand the reasoning behind these restrictions, which are basically, the longer that a trade remains open in a volatile forex market, the higher the likelihood that the client will generate losses. This is beneficial for market making brokers.

The same logic is applied to pip restrictions. Most brokers in the competitive for market place implement a minimum pip restriction (usually 5 pips, but dependent on the pair) between the open price and the price that they allow the position to be closed at. This is also applicable to pending orders, for example, a pending order can be placed a minimum 5 pips away from the current trading price of the forex currency pair.

Stop loss and take profit are a critical part of any forex trading risk and reward strategy, however, with pips level restrictions, closing a profit on your forex orders, or controlling loss on your forex position is limited as a scalper.

The logic behind scalping is to enter and exit the market to make the most of short term forex price movements and to avoid long term trades in a volatile forex market place. With pip and time levels restrict trading and lessen potential profits as part of a strategy by the market making broker.

Brokers that benefit from these limitations are those operating dealing desks and market making activities. Limits are in place to increase profitability for the broker or to limit the profitability of this forex scalping strategy, especially for clients trading with automated trading tools (forex robots or EAs).

Yadix is proud to offer its clients trading withoutrestriction, including zero pips levels on stop loss, take profit, pending orders and on all other trading. There are also no time limits in place at Yadix, meaning that clients trading forex scalping strategies have the freedom to maximise the profits and trade without any limitations whatsoever.

Yadix is totally unique in this sense as a true STP/ECNbroker. We are proud to be able to offer our clients the forex trading environment without restrictions and the ability to trade the way they want.

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