What is Scalping?
Scalping is a core concept in currency trading.
A fast-paced trading style targeting small pip gains (1–5 pips) on 1-minute to 5-minute charts with holding times ranging from seconds to minutes.
Understanding Scalping helps you manage your risk and spot high-probability trade setups.
Why It Matters for Forex Traders
In forex trading, Scalping helps you protect your capital. It gives you a clear rule to follow instead of guessing.
How to Identify and Apply Scalping
- 1Spot and mark Scalping on your chart during active trading hours.
- 2Check that the overall market trend agrees with your trade idea.
- 3Always place a protective stop loss before entering any position.
Practical Forex Example
For example, on a EUR/USD trade, applying Scalping allows you to set clear entry and exit points before risking real money.
PRO TRADER TIP
Always test strategies involving Scalping on a free demo account first before trading with real capital.