Technique | Day Trading
Scalping
"Scalping is an ultra-short-term trading strategy aimed at capturing small recurring gains on minimal price movements, with a large number of trades per session."
In-Depth Definition
Scalping is the most intensive form of day trading. Scalpers hold positions from a few seconds to a few minutes maximum, targeting gains of 1 to 10 pips or points per trade. Profitability relies on repetition: 50 to 200 trades per day, with a high win rate and a risk/reward ratio often below 1:1 but compensated by frequency. Requirements are strict: ultra-fast internet connection, high-performance execution platform (ECN or DMA), very low spreads, and iron discipline. Preferred markets are the most liquid: major forex pairs (EUR/USD, GBP/USD), indices (S&P 500 futures, DAX), and major cryptos. Scalping is heavily impacted by transaction costs.
StarQuant Insight
StarQuant optimizes scalping strategies by analyzing market microstructure (order book depth, order flow imbalances) in real time to identify zones with high potential for rapid moves with very tight stops.
Pro Tip
Scalping is not recommended for beginners. Psychological pressure is extreme and transaction costs rapidly erode profitability. Master day trading or swing trading first before venturing into scalping.