Trading Scalping: The Complete Guide
It’s 9:30 AM, and your algorithm just captured a 5-tick profit on ES futures while you were still making coffee. You’re already reviewing your strategy ...
It’s 9:30 AM, and your algorithm just captured a 5-tick profit on ES futures while you were still making coffee. You’re already reviewing your strategy dashboard before the market opens. This is the reality of scalping: turning microscopic price movements into consistent profits through speed and precision. Scalping is a trading strategy that aims to capture small price movements by entering and exiting positions within seconds or minutes. It relies on the bid-ask spread and high-frequency execution to accumulate profits from minor market fluctuations. It’s a legitimate method of arbitrage when executed properly, but can become fraudulent market manipulation if misused. Key fact: According to FINRA, a "day trade" involves buying and selling the same security on the same day, and traders executing four or more such trades within five business days (making up over six percent of total trades) are classified as "pattern day traders" requiring $25,000 minimum equity in their account. Scalping isn’t about chasing huge price moves—it’s about capitalizing on tiny, predictable gaps in the market.