Scalping is a high-frequency trading strategy focused on making small profits from minor price movements, often within minutes or seconds. Scalpers place dozens or even hundreds of trades per day, seeking to exploit bid-ask spreads or short-term inefficiencies. This approach requires fast execution, low transaction costs, and disciplined risk management. Scalping is popular in Forex and Crypto markets due to their liquidity and 24/5 (Forex) 24/7 (crypto) availability. While potential losses are small per trade, frequent trades can accumulate significant gains—or losses—over time.
Example:
A day trader executes multiple quick trades to capture small price movements throughout the session.
