What is Scalping in Trading ?
Today we’re going to Discuss What is Scalping in Trading ?
What is Scalping ?
Scalping is one of the fastest trading strategies out there. Scalpers do not try to take advantage of big moves or drawn trends. It’s a strategy that focuses on exploiting small steps over and over again. For example, profiting from bid-ask spreads, gaps in liquidity or other inefficiencies in the market.
Scalpers do not aim to hold their position for long. It is common to see scalp traders opening and closing positions in a matter of seconds. This is why scalping is often related to high-frequency trading (HFT).
Scalping can be a particularly profitable strategy if a trader finds market inefficiencies that occur frequently, and can exploit them. Each time that happens, they can make small profits that add up over time. Scalping is generally ideal for markets with high liquidity, where entering and exiting positions is relatively easy and predictable.
Scalping is an advanced trading strategy that is not recommended for novice traders due to its complexity. It also requires a deep understanding of the mechanics of markets. Other than that, scalping is generally more suitable for large traders (whales). The percentage profit targets are smaller, so trading larger positions makes more sense.
