Scalping
An ultra-short-term trading style that takes many small positions over seconds to minutes, harvesting tiny price moves with tight risk and high frequency.
Scalping is the highest-frequency active trading style, where each trade targets a small move — often just a few ticks — with a very tight stop and rapid execution. A scalper may take dozens to hundreds of trades in a single session.
Because individual gains per trade are small, profitability depends on a high win rate, minimal slippage, and very low transaction costs. Scalping demands a fast execution platform, direct market access, and the ability to make snap decisions without second-guessing.
Scalpers focus heavily on order flow, bid-ask dynamics, Level 2 data, and time-and-sales rather than chart patterns or fundamentals. It is a demanding style — the margin for error on any single trade is tiny, and psychological discipline must remain consistent across a high volume of decisions per session.
Related Terms
Day Trading
Opening and closing all positions within the same trading session — no overnight exposure. Requires focus, discipline, and strict risk management.
IntermediateSwing Trading
Holding positions for days to weeks to capture a directional "swing" in price. Balances active trading with manageable time commitment.
Intermediate