Scalping in Forex Trading

What is Scalping?

Scalping is a short-term trading strategy where traders aim to profit from very small price movements, often just 2–10 pips per trade. Scalpers open and close dozens — sometimes hundreds — of trades within a single trading session, holding each position for seconds to minutes.

The core idea: accumulate many small wins that collectively add up to a meaningful profit. A scalper winning 5 pips on 20 trades earns 100 pips total — equivalent to one good swing trade, but achieved through volume rather than patience.

Scalping demands intense focus, fast execution, and very low spreads. It's one of the most demanding styles psychologically, but also one of the most rewarding for those suited to it.

Scalping Strategies

1. The 1-Minute/5-Minute Chart Scalp

• Trade on M1 or M5 charts
• Enter on a small pullback within a clear trend
• Target 3–7 pips, stop at 5–10 pips
• Exit as soon as target is hit — no waiting

2. Moving Average Crossover Scalp

• Use two EMAs (e.g., EMA 9 and EMA 21)
• Buy when the fast EMA crosses above the slow EMA
• Sell when it crosses back below
• Works best during strong trending sessions (London open)

3. Support/Resistance Bounce Scalp

• Identify clear intraday support and resistance levels
• Buy at support, target resistance; sell at resistance, target support
• Use tight stops just below/above the level
• High win rate when levels are clearly respected

4. News Spike Scalp

• Trade the immediate price spike following major news releases
• Requires extreme speed — often automated
• Very high risk; not recommended for manual traders

Best Pairs for Scalping

Not all pairs are suitable for scalping. The ideal scalping pair has:

• Ultra-low spread (under 1 pip)
• High liquidity (easy execution)
• Consistent daily movement (enough pips to capture)

Pros and Cons

Advantages of Scalping:

• No overnight risk — all positions close within the session
• Many trading opportunities every day
• Quick feedback — you know within minutes if your analysis was correct
• Works in both trending and ranging markets
• Losses are small per trade (if disciplined)

Disadvantages of Scalping:

• Extremely time-intensive — requires constant screen watching
• High transaction costs (many spreads/commissions add up)
• Psychologically demanding — many small losses can shake confidence
• Requires fast internet and reliable platform execution
• Not suitable for beginners — requires mastery of reading short-term price action
• Broker restrictions — some brokers prohibit or penalise excessive scalping

Is scalping right for you?

Scalping is a legitimate and potentially very profitable strategy, but it requires exceptional discipline, the right broker, and significant practice before becoming consistently profitable.