Scalping Meaning: High-Frequency Trading for Profits

Table of Contents

Understanding Scalping: The High-Frequency Trading Strategy for Disciplined Traders

Welcome to our exploration of trading strategies! Today, we’re diving deep into a fascinating, high-intensity approach known as scalping. Often described as the most challenging and demanding trading style, scalping isn’t for the faint of heart. It’s a method where traders aim to capture numerous small profits from minimal price movements throughout the trading day. Unlike swing trading or position trading, where you might hold assets for days, weeks, or even months, a scalper’s holding period is typically measured in seconds or, at most, a few minutes.

Think of it like this: While longer-term traders seek to catch the “big waves” in the market, scalpers are content with skimming profits from the frequent “ripples.” This might sound simple, but it requires extreme precision, speed, discipline, and a deep understanding of market microstructure. Is it a strategy that could work for you? Let’s unpack what scalping truly entails.

At its core, scalping is a trading strategy focused on accumulating small profits from frequent trades. The fundamental principle is that capturing small price changes is easier and more frequent than capturing large ones. A scalper believes that smaller price movements are easier to predict and occur with higher probability than significant trends. Therefore, by executing a large volume of trades throughout the day, each yielding a tiny profit, the scalper aims for a substantial cumulative gain by the end of the trading session.

Consider this analogy: A traditional farmer waits for a single large harvest at the end of a season. A scalper is more like someone constantly harvesting small, rapidly growing crops throughout the day. They are not waiting for one massive payday; they are generating income through a steady stream of minor gains.

The defining characteristics of scalping are:

Extremely Short Holding Periods: Positions are typically held for seconds to a few minutes.
Small Profit Targets Per Trade: Profits might be just a few pips in Forex or a few cents per share in stocks.
High Trading Volume: Scalpers often execute dozens, if not hundreds, of trades in a single day.
Reliance on Technical Analysis: Fundamental analysis is generally irrelevant due to the short time frame.
Necessity of High Liquidity: To enter and exit large positions quickly without significantly impacting the price.
Strict Exit Strategy: A pre-defined, often automated, stop-loss is crucial to prevent small losses from escalating and wiping out cumulative small gains.

Does this high-frequency, rapid-fire approach appeal to you? It’s a stark contrast to strategies that encourage patience and letting profits run. Instead, scalping emphasizes constant activity and relentless pursuit of minor market fluctuations.

Why would a trader choose this high-stress, demanding approach instead of simpler, less active strategies? The rationale behind scalping is rooted in probability and volume. Scalpers operate under the assumption that smaller price movements (like hitting a support/resistance level briefly or capturing the bid-ask spread) are statistically more likely to occur than large directional moves within any given short period. By executing trades based on these frequent, small movements, they aim to build profits through repetition.

Imagine trading a stock that fluctuates by a few cents many times throughout the day, but only makes a significant move once or twice. A long-term trader waits for the big move. A scalper tries to profit from the many small fluctuations, potentially making money even when the market is relatively range-bound or consolidating.

Furthermore, scalpers often believe that the shorter the time frame, the less susceptible a trade is to sudden, unexpected news events. While major news can certainly cause volatility, a position held for only 30 seconds is less likely to be blindsided by an unforeseen announcement compared to one held for several hours or days. This isn’t foolproof protection, of course, but it’s part of the psychological appeal for some.

Core Appeal of Scalping	Rationale
Higher probability of small moves compared to large moves.	Scalpers believe small movements occur more frequently.
Ability to profit in various market conditions, including choppy or range-bound markets.	Scalping is less dependent on significant trends.
Reduced exposure time to major unexpected fundamental events.	Shorter trades can mitigate news-related risks.

So, the core appeal of scalping boils down to:

Higher probability of small moves compared to large moves.
Ability to profit in various market conditions, including choppy or range-bound markets.
Reduced exposure time to major unexpected fundamental events (though still vulnerable to high-speed volatility).
Potential for significant cumulative profits through volume and leverage.

But realizing this potential requires specific tools, skills, and a disciplined mindset.

Essential Tools and Requirements for Scalping Success

Scalping is not a strategy you can successfully implement with basic tools or a casual approach. It demands a specific technological setup and a particular type of brokerage relationship to provide the speed and data access necessary for rapid entry and exit.

Real-Time Data Feed: This is non-negotiable. Scalpers need access to the absolute latest price information without delay. Even a second’s lag can be detrimental in a strategy based on tiny, fleeting price changes.
Direct-Access Broker: Traditional brokers route orders through multiple intermediaries, causing delays. Direct-access brokers allow traders to send orders directly to the exchange or market maker, ensuring the fastest possible execution. This speed is critical for capturing small price movements before they disappear.
Level 2 Quotes: For stock scalpers, Level 2 data provides transparency into the order book – showing the best bid and ask prices offered by multiple market makers and participants. This depth of market information helps scalpers gauge short-term supply and demand dynamics and identify potential entry and exit points based on order flow.
Fast Execution Platform: The trading platform itself must be robust, reliable, and capable of handling rapid order placement and cancellation. Features like keyboard shortcuts or ‘hot keys’ for instant order entry are often utilized.
High-Speed Internet Connection & Reliable Hardware: This might seem obvious, but even minor internet latency or computer lag can be fatal for a scalper. A stable and fast connection is paramount.
Sufficient Capital: While the profit per trade is small, scalpers often trade large position sizes to make these small profits worthwhile. For instance, making $0.05 profit on 100 shares yields $5. Doing that 100 times is $500. Doing it on 10,000 shares yields $500 per trade. This necessitates significant capital. In the U.S. stock market, the Pattern Day Trader (PDT) rule requires traders who make four or more day trades in five business days (and those trades account for more than 6% of their total trading activity for the period) to maintain a minimum equity of $25,000 in their margin account. This rule significantly impacts aspiring stock scalpers with smaller accounts.
Leverage: Many scalpers utilize leverage, particularly in markets like Forex, to control larger positions with relatively less capital. While leverage can amplify profits, it equally amplifies losses, making risk management even more critical.

Without these tools and capital requirements, attempting to scalp is often a frustrating and potentially expensive endeavor. It highlights that this strategy isn’t just about technique; it’s also about having the right infrastructure.

Scalping Strategies in Action: From Spread to Directional Plays

Scalping isn’t a single monolithic strategy; it encompasses several distinct approaches, each with its own nuances and focus. Understanding these variations can help you see how scalpers operate in different market conditions.

Market Making (Exploiting the Spread): Some scalpers act similar to market makers, aiming to profit from the bid-ask spread. They simultaneously place a limit buy order at the bid price and a limit sell order at the ask price. If both orders are filled, they’ve essentially bought at the bid and sold at the ask, capturing the spread as profit, minus commissions. This requires exceptionally fast execution and operates best in highly liquid markets with tight spreads. It’s a strategy that profits regardless of directional price movement, so long as there is activity back and forth across the spread.
High-Volume Directional Trading: More common among retail scalpers, this approach involves identifying potential short-term directional moves. Using technical analysis on very short time frames (like 1-minute or even tick charts), the trader enters a position hoping for a quick move of a few pips or cents in their favor before exiting. They repeat this process many times throughout the day, sometimes making multiple trades on the same instrument within minutes. This requires identifying short-term momentum or bounces very quickly.
Breakout or Range-Bound Exploitation: Scalpers can tailor their strategy to the market’s structure. In range-bound markets, they might buy at support levels and sell at resistance levels, targeting the small movement within the range. During potential breakouts, they might try to jump on board right as a price crosses a key level, aiming to capture the initial burst of momentum before other traders pile in. This requires identifying key levels and rapid reaction time.

Each of these strategies relies heavily on instantaneous decision-making and automated or semi-automated processes where possible. There’s very little time for deliberation once a signal appears. This brings us to the crucial role of technical analysis in a scalper’s world.

Technical Analysis for Scalpers: Indicators and Charts

Fundamental analysis, which focuses on economic data, news events, and company financials, is largely irrelevant for scalpers due to their extremely short time horizons. By the time fundamental news is digested and affects the market significantly, a scalper’s trade is likely already closed. Instead, scalpers rely almost exclusively on technical analysis.

However, technical analysis for scalping looks different from its application in longer-term strategies. The focus is on speed and identifying immediate potential price movements. What tools do scalpers use?

Short-Term Charts: Scalpers primarily use tick charts, 1-minute charts, 5-minute charts, or sometimes 15-minute charts to identify trends and patterns at the lowest possible resolution. These charts reveal the micro-movements that scalpers try to exploit.
Key Technical Indicators: While longer-term traders might use indicators for trend confirmation over days, scalpers use them to identify potential short-term momentum shifts, overbought/oversold conditions, or entry/exit signals based on very short periods. Common indicators include:
- Moving Averages (MA): Often used on short time frames to quickly identify immediate trend direction or potential support/resistance. A common setup might involve using a fast MA (e.g., 5-period) and a slightly slower MA (e.g., 10-period) on a 1-minute chart, looking for crossovers.
- MACD (Moving Average Convergence Divergence): Scalpers might look for quick MACD line and signal line crossovers on short charts, or divergences with price, as potential short-term entry signals.
- RSI (Relative Strength Index): Used to spot potential short-term overbought or oversold conditions, suggesting a brief pullback or reversal might be imminent, offering a chance to fade the short-term move or prepare for a reversal scalp.
- Bollinger Bands: Can help identify periods of low volatility (bands contracting) often preceding a potential short-term breakout, or extreme price moves reaching the bands, suggesting a potential temporary reversal.
- Pivot Points: These levels, calculated from the previous period’s high, low, and close, can act as potential short-term support and resistance levels where price might briefly bounce or stall.
Price Action: Many experienced scalpers rely heavily on pure price action, watching how price moves relative to support/resistance levels, previous highs/lows, and candlestick patterns on minimal time frames. They might look for quick rejections of levels or strong bursts of momentum.
Order Flow Analysis: Using tools like Level 2 (for stocks) or analyzing volume profiles can give scalpers insights into buying and selling pressure at specific price levels, helping them make rapid decisions based on immediate supply and demand dynamics.

Mastering technical analysis for scalping requires not just understanding the indicators but developing the ability to interpret signals instantaneously and act without hesitation. There’s no time for lengthy analysis; it’s about reacting to what the charts and data are showing right now.

Technical Tools for Scalping	Purpose
Short-Term Charts	Identify trends and patterns.
Key Technical Indicators	Spot short-term momentum shifts.
Price Action	Track price movements against levels.
Order Flow Analysis	Assess immediate supply and demand.

Scalping Across Markets: Stocks vs. Forex

While the core principles of scalping remain consistent – fast execution, small profits, high volume – the application varies slightly depending on the market. The two most popular markets for scalping are stocks and Forex (foreign exchange).

Scalping Stocks

Stock scalping typically involves trading highly liquid stocks, often large-cap companies, or ETFs. The profit targets are usually just a few cents per share. Key considerations for stock scalpers include:

The PDT Rule: As mentioned earlier, this rule in the U.S. requires a minimum $25,000 equity for frequent day traders, including scalpers. This can be a significant barrier for those with smaller accounts.
Level 2 Data: Essential for understanding immediate order flow and identifying where institutional buyers and sellers are positioned.
Commissions and Fees: Stock commissions, even discounted for high-volume traders, can quickly eat into small profits. Scalpers need a favorable commission structure.
Volatility: Scalpers look for stocks with enough intraday volatility to provide frequent small moves.

Scalping Forex

Forex scalping involves trading currency pairs, aiming to profit from small movements of just a few pips. Forex is often considered ideal for scalping due to its high liquidity (especially major pairs), 24/5 market access, and the availability of high leverage. Key considerations for Forex scalpers include:

Pips and Spreads: Profits and costs are measured in pips (points in percentage). The spread (difference between bid and ask price) is a direct cost per trade. Scalpers need tight spreads, especially when using the market-making strategy.
Leverage: Forex brokers offer significant leverage, allowing scalpers to control large positions (lots) with relatively small capital. This amplifies profits but also risks.
Broker Choice: The speed of execution and the competitiveness of spreads are paramount. An ECN (Electronic Communication Network) or STP (Straight Through Processing) broker is often preferred over dealing desk brokers to ensure direct market access and minimize requotes.
Platform Stability: A reliable platform capable of handling rapid order entry (market orders, limit orders, stop-losses) without slippage is crucial.

Whether you choose stocks or Forex, the demand for speed, liquidity, and precise execution remains constant. The specific tools and market dynamics differ, but the core scalping philosophy persists.

If you’re considering exploring Forex trading and how scalping strategies might apply, choosing a robust platform is key. Finding a broker that offers tight spreads, fast execution, and access to reliable charting tools is essential for the high-frequency nature of scalping. If you’re just starting to explore the possibilities of trading different currency pairs or diving into CFDs, the platform you choose makes a real difference.

If you’re considering beginning foreign exchange trading or exploring more CFD instruments, then Moneta Markets is a platform worth considering. It’s based in Australia and offers over 1000 financial instruments, suitable for both novices and professional traders.

The Risks and Challenges of Scalping

Despite the potential for cumulative gains, scalping is widely regarded as one of the riskiest and most challenging trading strategies. Why? Because the very elements that make it appealing also contribute to its significant drawbacks.

High Commission Costs: Since profits per trade are minuscule (e.g., $5-$10), high trading volume means that commissions and fees can quickly accumulate and eat into or even outweigh profits. A scalper might need to make dozens or hundreds of successful trades just to cover the day’s costs before even thinking about profit.
Vulnerability to Slippage: In fast-moving markets, the price at which your order is executed might be slightly different from the price you requested. This “slippage,” even by a fraction of a pip or a cent, can turn a planned small profit into a loss, especially given the tight margins scalpers work with.
The Impact of One Large Loss: Scalpers make many small profits. However, just one large loss can potentially wipe out the gains from dozens or even a hundred profitable trades. This is why a strict, immediate exit strategy (like an automated stop-loss) is non-negotiable. Hesitation or a technical failure can be disastrous.
Demanding Psychological Toll: The sheer intensity of watching charts and order flow minute-by-minute, making split-second decisions, and constantly being in and out of trades is mentally exhausting. It requires intense focus, emotional control, and the ability to remain calm under pressure. Overtrading, burnout, and impulsive decisions are significant risks.
Requirement for Constant Attention: Scalping is not a set-it-and-forget-it strategy. It demands your continuous, focused attention throughout the trading session. You cannot effectively scalp part-time or while distracted.
Technical Reliance: Scalpers are heavily reliant on their technology (internet speed, computer performance, broker feed, platform stability). Any technical glitch can lead to missed opportunities or, worse, uncontrolled losses.

Risks of Scalping	Description
High Commission Costs	Can accumulate quickly, eating into profits.
Vulnerability to Slippage	Orders may execute at different prices, impacting profits.
Impact of One Large Loss	Can erase profits from multiple successful trades.
Demanding Psychological Toll	Requires intense focus and emotional control.
Requirement for Constant Attention	Not compatible with part-time or distracted trading.
Technical Reliance	Dependence on technology increases risk of failures.

Given these challenges, it’s clear that scalping is not a beginner-friendly strategy. It requires not only technical skill but also a robust mental game and the right technological setup.

Is Financial Trading Scalping Legal? Drawing the Line

A common question, often fueled by misunderstandings or association with other activities, is whether financial trading scalping is legal. The answer, unequivocally, is yes, in the context of legitimate financial markets and regulated trading activities.

Scalping, as a trading strategy focused on profiting from short-term price movements and bid-ask spreads, is a recognized and legal form of trading in markets like stocks, Forex, futures, and commodities. Regulatory bodies like the SEC, FINRA (in the U.S.), ASIC (in Australia), and others overseeing financial markets permit this style of trading, provided it adheres to standard market rules and regulations. It is simply one method among many that traders use to attempt to profit from market fluctuations.

It is crucial, however, to distinguish legal financial trading scalping from illegal activities sometimes associated with the term “scalping” in other contexts, or from fraudulent practices within trading itself.

Not Market Manipulation: Legal scalping is about reacting to existing market conditions and order flow. It is not about artificially manipulating prices or creating false appearances of activity to deceive other market participants. Pump-and-dump schemes or spoofing (placing large orders without intent to execute to mislead others) are examples of illegal manipulation, not legitimate scalping.
Transparency: Legitimate scalpers operate within the public, transparent market structure, using publicly available data (like Level 2 or price feeds) and placing orders visible to market participants (unless using dark pools, which have their own regulations).

So, while challenging and risky, employing a scalping strategy within a regulated financial market environment using legitimate tools and methods is perfectly legal. The confusion often arises when the term is used elsewhere.

Beyond Financial Markets: Understanding Other Forms of “Scalping”

The term “scalping” isn’t exclusively used in financial trading. It also refers to a controversial practice in other markets, particularly the reselling of goods or tickets at inflated prices. This non-financial form of scalping is distinct from financial trading and often faces different regulatory scrutiny.

The most prominent example is ticket scalping, where individuals or entities (often using automated bots) buy large quantities of tickets for popular events (concerts, sports) at face value and then resell them almost immediately at significantly higher prices on secondary markets like StubHub. This practice exploits high demand and limited supply.

While the core principle of profiting from a price differential is vaguely similar to financial scalping (buying low, selling high rapidly), the context, mechanics, and regulation are vastly different.

Nature of the Asset: Financial scalping deals with fungible financial instruments. Ticket scalping deals with specific, non-fungible event access.
Regulatory Focus: Financial scalping is regulated by financial authorities focusing on market integrity, fair execution, and capital requirements (like the PDT rule). Ticket scalping regulation (where it exists) often focuses on consumer protection, fair access, and preventing unfair practices like using bots to bypass purchasing limits. Recent government actions, including executive orders and lawsuits against ticketing giants, have aimed to address issues like transparency, predatory pricing, and potential monopolistic practices in the ticketing industry.
Market Mechanism: Financial scalping operates within dynamic, two-sided markets with continuous price discovery. Ticket scalping often occurs by arbitraging a fixed primary market price against a demand-driven secondary market price.

Understanding this distinction is important. When we discuss “scalping” in the context of financial markets, we are referring to the legal, high-frequency trading strategy, not the practice of reselling tickets or goods for a markup. The regulatory concerns and legal frameworks surrounding these two activities are entirely separate.

Who is Scalping For? Assessing Your Suitability

Given the demands and risks, scalping is not a strategy suited for every trader. So, who might be a good fit for this high-octane approach?

Scalping is typically best suited for traders who:

Possess a High Level of Discipline: You need to stick strictly to your trading plan, execute trades without hesitation, and cut losses immediately without letting emotions interfere.
Can Handle High Stress: The fast pace and constant need for decision-making can be incredibly stressful. You must be able to remain calm and focused under pressure.
Have Sufficient Capital: Meeting requirements like the PDT rule or being able to trade large position sizes to make small profits worthwhile means scalpers often need more capital than traders employing longer-term strategies with smaller position sizes relative to their account.
Have Quick Reflexes and Decision-Making Skills: There’s no time to ponder. Opportunities appear and disappear in seconds.
Are Technologically Adept: You need to be comfortable using advanced trading platforms, understanding data feeds, and ensuring your hardware and internet connection are reliable.
Can Devote Undivided Attention: Scalping requires you to be actively watching the market during trading hours. It’s not compatible with holding down a demanding job simultaneously unless you can dedicate specific, focused time to trading.
Thrive on Activity: If you enjoy constant market engagement and dislike waiting for opportunities, the non-stop action of scalping might appeal to you.

Conversely, if you are prone to impulsive decisions, easily stressed, uncomfortable with rapid change, have limited capital, prefer slower-paced analysis, or cannot dedicate focused time, scalping is likely not the right strategy for you. It’s crucial to honestly assess your personality, capital, and time availability before attempting to scalp.

Mastering the Mindset: The Psychology of a Scalper

Beyond the technical tools and strategies, success in scalping, perhaps more than any other trading style, hinges on psychological mastery. The intensity and frequency of trades can amplify emotional biases, making a disciplined mindset absolutely critical.

Think about it: you might make 5, 10, or even 20 profitable trades in a row, each yielding a small gain. This can build confidence, perhaps leading to overconfidence or complacency. Then, one trade goes against you, and without a strict stop-loss, that single loss could erase hours of profitable trading. How do you react? Do you chase the loss? Do you get angry or frustrated? These reactions can lead to a cascade of poor decisions.

Scalpers must cultivate specific psychological traits:

Detachment: Each trade must be viewed as an independent event. Don’t let the outcome of the last trade influence your decision on the next.
Discipline: Adhere rigidly to your predefined rules regarding entry signals, position sizing, and, most importantly, exit strategies (stop-losses).
Patience (paradoxically): While execution is rapid, the patience comes in waiting for the right high-probability setups to appear, rather than forcing trades out of boredom or a need for action.
Focus: Maintain intense concentration for extended periods. Scalping is mentally draining, and lapses in focus can be costly.
Emotional Control: Fear and greed are magnified by the speed and frequency of trades. You must manage the urge to widen a stop-loss hoping the price will turn or get out of a profitable trade too early out of fear of it reversing.

Many successful scalpers emphasize that mastering their own psychology was a more significant hurdle than mastering technical analysis or strategy. The pressure of the short time frame and high volume demands a level of mental fortitude that not everyone possesses.

Building Your Scalping Plan: From Strategy to Execution

Like any trading approach, successful scalping requires a well-defined plan. You can’t just jump in and start buying and selling randomly. A comprehensive plan will outline your approach, managing both opportunities and risks.

Your scalping plan should include:

Market and Instrument Selection: Which market(s) will you trade (stocks, Forex, futures)? Which specific instruments within those markets (e.g., EUR/USD, AAPL stock)? Choose instruments known for high liquidity.
Time Frames: Which charts will you monitor (tick, 1-min, 5-min)? How will you use them?
Strategy Definition: Will you focus on exploiting the spread, trading short-term momentum, or reacting to breakouts/ranges? Define your specific entry signals based on indicators, price action, or order flow.
Position Sizing: How large will your positions be? This must be carefully calculated based on your capital, leverage (if used), and your risk tolerance per trade. Remember, large positions are needed for small profits to add up, but they also mean larger losses if the trade goes wrong.
Exit Strategy (Crucial):
- Stop-Loss: This is non-negotiable. Define exactly where you will exit a losing trade. For scalping, stop-losses are typically very tight, perhaps just a few pips or cents away. Consider using automated stop-loss orders placed immediately upon entry.
- Take-Profit: Define where you will exit a winning trade. These targets are also very tight. The goal is to capture the small move and get out.
Risk Management Rules: What is the maximum percentage of your capital you will risk per trade? What is your maximum allowable loss for the day or week? Adhering to these limits is vital for survival.
Trading Hours: When will you trade? Focus on times when your chosen market is most liquid and volatile (e.g., during market overlaps).
Platform and Broker Configuration: Ensure your platform is optimized for speed and your broker offers the necessary execution quality and cost structure.

Once you have a plan, it’s essential to test it thoroughly, perhaps using a simulator or demo account, before risking real capital. Scalping is a high-execution strategy, and testing helps build confidence in your signals and your ability to react quickly and correctly.

When selecting a trading platform for strategies like scalping, where speed and reliability are paramount, it’s worth considering options that cater to such needs. The platform’s execution speed and spread competitiveness directly impact profitability in high-frequency trading. When looking for a trading platform that offers flexibility and technological advantages, Moneta Markets is worth mentioning. It supports major platforms like MT4, MT5, and Pro Trader, combining high-speed execution with low spread settings to provide a good trading experience.

Conclusion: Is Scalping Right for You?

We’ve delved into the world of financial scalping, exploring its definition, mechanics, the rationale behind it, essential tools, various strategies, and the significant risks involved. Scalping is a high-frequency trading style that seeks to profit from numerous small price changes over very short holding periods. It is a legitimate and legal trading method within regulated financial markets, distinct from activities like ticket scalping.

Scalping demands a specific set of requirements:

Advanced technical tools and data access for speed.
Sufficient capital to trade large positions and meet regulatory requirements (like PDT).
A high level of discipline and emotional control to manage the stress and intensity.
A well-defined trading plan with an ironclad exit strategy.

While the appeal of potentially accumulating significant profits through high volume is strong, the reality is that scalping is incredibly challenging. It requires constant focus, rapid decision-making, and exposes traders to high costs and the risk of substantial losses if not executed flawlessly.

Is scalping the right path for your trading journey? That depends entirely on your personality, capital, risk tolerance, and willingness to dedicate the necessary time and mental energy. It is generally not recommended for novice traders due to its complexity and demanding nature. However, for experienced, highly disciplined individuals with the right resources and psychological makeup, mastering the art of capturing those fleeting market ripples can be a rewarding endeavor.

Before you consider scalping, take the time to educate yourself further, practice extensively in a risk-free environment, and honestly assess if your temperament and resources align with the unique demands of this high-intensity trading strategy. Successful trading, regardless of the strategy, always starts with knowledge and preparation.

scalping meaningFAQ

Q：What is scalping in trading?

A：Scalping is a trading strategy focused on making small profits from numerous trades in a short time frame.

Q：Is scalping legal?

A：Yes, scalping is legal in regulated financial markets, provided it adheres to market rules.

Q：What are the risks of scalping?

A：Risks include high commission costs, slippage, vulnerability to significant losses, and psychological stress.