What Is Scalping: The Complete Guide
Scalping is a high-frequency trading strategy where traders open and close positions within seconds to minutes, aiming to profit from tiny price movemen...
Scalping is a high-frequency trading strategy where traders open and close positions within seconds to minutes, aiming to profit from tiny price movements. Unlike traditional trading, scalpers focus on capturing small gains repeatedly throughout the trading day rather than waiting for significant market shifts. This approach requires intense focus, quick decision-making, and precise execution to overcome the challenges of tight spreads and high transaction costs. Key fact: Scalpers typically target price movements of 5-20 pips per trade, executing 50+ trades daily to accumulate meaningful profits. This strategy demands constant market monitoring and strict risk management to be viable. Key fact: The average successful scalper maintains a win rate of 55-60% with a risk-reward ratio of 1:1.5 to 1:2, making the strategy profitable despite small per-trade gains. Key fact: Scalping accounts for approximately 25% of all day trading activity in major financial markets, though it represents only 5-10% of all profitable traders due to its high difficulty. Scalping is a trading technique that focuses on capturing minute price movements through rapid, frequent trades.