In plain English
What Scalping means
A scalper tries to take many small gains rather than wait for one large move. The approach depends on frequent entries and exits, tight control of costs, and fast execution. In forex and CFDs, the bid-ask spread and slippage can matter as much as the trade signal itself.
Why it matters
Scalping is highly sensitive to transaction costs, execution quality, and market liquidity. A strategy that looks profitable before costs can become unprofitable once spread, commissions, slippage, and occasional requotes are included.
Example
A trader buys EUR/USD at 1.08400 and sells at 1.08406 a few seconds later for a 0.6 pip gain. That result is simplified: if the round-trip spread and any commission exceed the move, the trade may still lose money despite the price change.
Quick answers
Common questions
Is scalping the same as day trading?+
No. Scalping is usually a subset of day trading, but not every day trade is a scalp. Scalping focuses on very small intraday moves and frequent turnover.
Does scalping require automation?+
Not necessarily. Some traders scalp manually, but automation or very fast order entry can help because the strategy depends on speed.
Sources