Scalping is a trading strategy that attempts to profit from small price changes through very short-term trades, typically lasting seconds to minutes. Scalpers make numerous trades throughout the day, seeking to capture bid-ask spreads or minor price movements. This strategy requires fast execution, tight spreads, and sophisticated technology infrastructure.

Scalping success depends on transaction costs, execution speed, and market liquidity. High trading frequency means that commissions and spreads significantly impact profitability. Scalpers often use leverage to amplify returns from small price movements while requiring strict risk management to prevent large losses from individual trades.

Real-world example: A forex scalper makes 50 EUR/USD trades daily, capturing 2-3 pips per trade with 100,000 unit positions, generating $100-150 per successful trade while risking $50-100 per trade with tight stop-losses.