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What is Micro scalping and why is it prohibited?
What is Micro scalping and why is it prohibited?
Updated over 3 weeks ago

Micro scalping is an ultra-short-term trading strategy where trades are executed within seconds to under a minute, targeting small profits, typically less than 3 points. This strategy relies on executing a high volume of trades with minimal price movements to accumulate gains. However, it depends heavily on low slippage, near-instant execution, and perfect market conditions, which are rarely achievable in live trading.

While normal scalping is allowed at FXIFY Futures, micro scalping is prohibited because it can create inconsistent results, system strain, and unrealistic expectations.


Examples of Micro Scalping

Here are some scenarios that illustrate why this strategy is restricted:

Example 1: Ultra-Short Duration

  • Buy Price: 18415.00

  • Sell Price: 18416.00

  • Duration: 30 seconds

  • Profit: $10 (1 point difference)

This trade lasted only 30 seconds with a tiny profit target of 1 point. While quick profits seem appealing, sustaining this strategy across hundreds of trades daily is impractical due to execution risks and potential slippage.

Example 2: Minimal Profit Target

  • Buy Price: 18430.50

  • Sell Price: 18432.25

  • Duration: 45 seconds

  • Profit: $17.50 (1.75 points difference)

This trade targeted a small profit in under a minute. The success of such trades relies on flawless execution and zero latency, conditions that are rarely met in live trading.

Example 3: High Frequency

  • Buy Price: 18400.00

  • Sell Price: 18401.50

  • Duration: 50 seconds

  • Profit: $15 (1.5 points difference)

Repeating this trade 50-100 times a day is typical of micro scalping. However, even slight slippage, commission costs, or execution delays can erase profits and turn the strategy into a net loss.

Example 4: Tight Stops & Quick Exits

  • Buy Price: 18390.00

  • Sell Price: 18392.00

  • Duration: 55 seconds

  • Profit: $20 (2 points difference)

Trades with tight stop-loss and take-profit levels are prone to premature stops due to normal market fluctuations, leading to more frequent losses.


How Micro Scalping Differs from Normal Scalping

Feature

Micro Scalping

Normal Scalping

Trade Duration

Seconds to under 1 minute

1–5 minutes or more

Profit Target

Very small (e.g., 1–3 points)

Modest (e.g., 5–10 points)

Trade Frequency

Very high (50-100+ trades per day)

Moderate (10-50 trades per day, depending on market activity)

Execution Dependency

Requires perfect conditions (low latency, no slippage, high liquidity)

Can adapt to real-world volatility

Risk Profile

High due to sensitivity to slippage and execution speed

Moderate with more sustainable trade management


Why Micro Scalping is Prohibited

  1. Execution Challenges – Micro scalping depends on flawless execution with zero slippage and delays, which is unrealistic in live markets.

  2. Unrealistic Conditions – The strategy relies on consistently low spreads and high liquidity, making it unreliable during market fluctuations.

  3. System Strain – High-frequency trades put excessive load on trading infrastructure, affecting overall platform performance.

  4. Inconsistent Results – Due to fees, slippage, and unpredictable execution, micro scalping is rarely profitable long-term.


Why Normal Scalping is Allowed

Normal scalping involves holding trades for a few minutes while targeting realistic profit ranges of 5-10 points per trade. It allows traders to adapt to market conditions, manage risk effectively, and operate within a sustainable framework.

FXIFY Futures supports scalping strategies that promote fair trading conditions and long-term profitability while maintaining system efficiency.

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