Scalping with isa query

Hi folks new member here. I joined the forum to ask this question after searching and still looking for clarification. In regards to scalping when investing, is there a time limit?The terms and conditions state 5 mins or less is considered scapling but i read here that it only applies to cfd. A few examples where ive had problems are last week I invested in tesla and then felt i had to watch my money go down for 6 minutes where i would rather have got out after a minute or 2 when I realised this was a mistake lol and today I put money into novan and was up nearly 10 percent after a minute or 2 but by the time 6 minutes was up it was down to 2 percent gains roughly. Could i have sold at the 10 percent even though i only held the position for 2 minutes or so without breaching the terms and conditions? Basically im asking if jumping in and out as often as i want is OK as im not trading cfds im using the isa account.
Thanks for taking the time to read this im pretty new to trading.

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There’s a difference between scalping and day trading.

What you are doing is not scalping, heck I don’t think its even possible to scalp Tesla.

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So jumping in and out after a few minutes is ok as that’s technically day trading as opposed to scalping? The tesla example was just after earnings it went up 6 percent and i bought at the top lol then it started to plummet and I didn’t want to sell till after the 5 minutes in case that wasnt aloud was down £75 by the time it was 6 minutes lol so from what I’m reading scapling appies to cfds which i know nothjng about and holding a postion for a few minutes is ok on the isa as thats just day trading?

Hi i read these but wanted to double check. So basically day trading is opening and closing a position same day and there is no time limit?

That is fine, you are permitted to close a position whenever you want.

What T212 don’t take kindly to is gaming the system, so to speak, and taking advantage of the software to trade in high frequency, we’re talking multiple trades a minute, with low spreads (my definition of scalping)

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Thanks for the reply :blush:. Thats good to know. The amount of times ive watched my gains disappear in 5 or 6 mins on penny stocks because it wasn’t over 5 mins​:joy::joy: oh well least i know know and im still up on my initial investment. Same with watching my money dissappear sitting watching the minutes when it wasn’t necessary lol I thought jumping in when a stock was going up and then out before 5 mins was up was classed as scalping

That is scalping. Scalping on CFD account isn’t allowed. If it happens occasionally it’s ok, but if you have 100 trades and the average time of your trade is less than 5 mins, that will be considered scalping.

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See response from David in regards to a question I had like yours:

[David]

[Jun 12]

@adm Hello :wave:

It’s okay to trade small sizes & close positions in less than 5 minutes, even more than a few (10-15-20, etc…) positions. The problem arises when that’s the sole way of trading & is aimed at abusing an issue with the trading app.

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Thanks for that. Its not only way i trade its just the odd occasion. ive waited at least 5 minutes when ive wanted out due to losing money and occasionally i might buy a penny stock and 5 minutes later most or all gains which can be alot are gone.

Yeah never do that, don’t think right it’s going against me now and losing out but I’ve got 2 mins 34 seconds to wait before five minutes is up.

:sweat_smile:

Scalping is intentionally open and closing many positions in very short space of time as your main way of trading.

In the ISA which you’re using your own funds it doesn’t make it worth it without significant capital.

That sounds exhausting.

@Hybridstrings As I recall we have been told in the forum that the no scalping rule only applies to CFD account, not Invest or ISA accounts.

I suspect that the reason that scalping is discouraged in the CFD account is that Trading 212 bears the full cost of hedging open positions and this is made difficult and costly if positions are being opened and closed with high frequency. But in the Invest and ISA accounts Trading 212 has no such difficulties/costs and so you are free to trade however you like.

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