Strategies

Scalping: High-Frequency Small Gains

Scalping extracts small gains from dozens of rapid trades per session — demanding but effective for skilled traders.

Key rules

1. Only scalp highly liquid instruments with tight spreads
2. Execute during peak volume hours for best fills
3. Maintain strict per-trade risk despite small position targets
4. Commissions and spreads are proportionally larger for scalpers
5. Scalping demands exceptional psychological discipline and speed

Scalpers hold positions for seconds to minutes, targeting 0.1–0.5% moves with tight stops. Success requires fast execution, tight spreads, and robust risk management since many trades occur each session.

Scalping is most viable in liquid instruments during peak volume hours. The psychological demand is high. Most traders overestimate their ability to scalp profitably after costs.