I realise that scalping is prohibited on Trading212 but myself and I’m sure a lot of other people need more clarification on what actually consists of scalping in the T&C’s.
It’s not that I want to scalp trade on the platform but I’m worried that if I ever need to escape a wrong trade quickly or the price is falling/rising too fast, I’m going to close my trade in under 5 minutes? It may also be the case that I’ve traded an instrument which plummeted/rocketed and you close your trade in under 5 minutes to close the deal and take the profit. I recently did both in regards to the oil crash a week back and have since closed my account as I fear at any moment Trading212 can hold my money and terminate my account. Will this be the case usually and could I please have more clarification on these rules for my scenario as I’m happy with the Trading212 platform but the worry behind it doesn’t make me so sure.
Of course this does not replace an official answer by the team, but they have said that this is only a problem if you do it systematically. As long as you don’t make all of your trades with the intention of selling them off immediately after, you should be fine.
I’m in the same boat as you, last week’s oil crash took me for a ride, I made 200% profit and then plummeted to margin call within an hour because I underestimated the fluctuations. (All short positions) I’m pretty sure one of the positions closed out within a few seconds of me opening it because it hit my stop loss.
But I made my initial investment back and now I’m using much smaller amounts to trade oil. Expensive lesson learned!
If it’s not written in T&C it doesn’t matter who’s saying what, it just doesn’t count. I need reassurance that Trading212 won’t freeze my account and just take my £2m investment on basis that I violated T&C, as it happened back in 2017 with BCH. If this isn’t explicitly written in T&C, I’m afraid that anyone who’s taking trading seriously can clearly see this as a serious issue. I like the platform, but without reassurances, I’m sorry, but I won’t be investing any serious amount of my money. Maybe if your capital is like £200 or you are just playing around, it’s ok, I’m talking about more serious investments, like £250k and up. If you disagree with my point of view, in my opinion, you are just blindly insane.
well, the T&C recently got announced for an update. you are free to check if the clarification regarding scalping has changed.
T212 staff have said that issues only crops up when it is systematic. If your trading strategy requires scalping, then by all means put your money in another broker or platform that permits this practice. If you are just going to end up doing it occasionally because the opportunity is there, then you have nothing to worry about.
But I can appreciate wanting @Team212 to make sure that all bases are covered in the Terms to avoid future worries.
