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Scalping

Definition

A trading strategy that aims to profit from very small price movements by entering and exiting trades within seconds to minutes.

How It Works

Scalping involves making many quick trades throughout the day, each targeting small profits (1-10 pips in forex). Scalpers rely on high win rates, tight spreads, and fast execution.

In prop trading, scalping compatibility varies by firm: some fully allow it, others restrict it (no trades under 1-2 minutes, or spreads widened during volatile periods). Scalpers should prioritize: firms that allow rapid-fire trading, platforms with fast execution (cTrader), tight spreads, and no minimum holding time rules.

Scalping requires intense focus and screen time but can be very profitable when done well.

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