What is Scalping?
A trading style that takes many small profits from very short holding periods — typically seconds to minutes per trade.
Scalping is high-frequency trading where the trader takes many small profits per session. Typical scalper setup: 1-minute or 5-minute charts, watch for short-term momentum (breakouts, news reactions, order-flow patterns), enter, take 5-15 pips, exit. Most scalpers do this 5-50 times per day during liquid sessions.
Scalping requires: ECN/Raw account (low spread), fast execution (sub-30 ms latency), high discipline (no holding losers), and a strategy with edge measured in pips × win rate. Spread + commission costs dominate — a scalper trading 30 lots/day at 1.0-pip Standard spread pays $900/day in spread; same trader on 0.1-pip ECN + $7 commission pays ~$240/day.
Many prop firms restrict scalping or impose minimum hold times (e.g. 60 seconds). Check the firm's Challenge rules before buying.