Glossary

Scalping

A style that aims to profit from small price moves lasting seconds to minutes, through a large number of trades; the approach most sensitive to costs and execution quality.

Scalping needs a tight spread, low commission, a fast platform and often an order book/footprint. With profit targets of a few pips/ticks, even a 1-pip spread decides the expectancy.

A high trade count raises the psychological load and the chance of mistakes; it is the hardest style for beginners.

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