Definition:
Scalping is a short-term trading strategy that aims to profit from very small price movements by executing many quick trades within minutes or seconds.
Explanation:
In scalping, traders open and close multiple positions in a single session, targeting just a few pips or ticks each time. The idea is that small but frequent gains can add up to significant profits if executed with discipline.
Scalping requires:
Because scalpers hold positions for very short periods, they rely on liquidity and volatility, usually trading during active sessions like the London–New York overlap.
📊 Characteristics of Scalping
⚖️ Pros and Cons of Scalping
| Pros | Cons |
| Quick profits, many opportunities | Requires intense focus and time |
| Low exposure to overnight risks | High transaction costs (commissions/spread) |
| Works in volatile markets | Emotionally and mentally exhausting |
| Small losses if disciplined | Not ideal for beginners |
Example (Forex):
A scalper buys EUR/USD at 1.1000 and sells at 1.1003. Profit = 3 pips. They may repeat this dozens of times during the session.
Related Terms:
Day Trading, Swing Trading, Technical Indicators, ECN Broker, Spread, Slippage
Category:
Trading Strategies / Timeframes
✅ FastPip Tip:
If you want to try scalping, choose a broker with tight spreads, fast execution, and low commissions—otherwise, costs will eat your profits.
📣 Related Resources from FastPip
Want to master scalping with less stress?
✅ Copy professional scalpers via our Copy Trading Platform
✅ Use Forex Signals optimized for short-term entries
✅ Read guides on our Blog about scalping strategies and risk control
