One of the most popular forex trading techniques is scalping. The extremely brief time between a trade’s opening and conclusion is its defining feature.

It is comparable to action-packed thrillers that keep you on the edge of your seat the entire time.

All at once, it’s thrilling, frantic, and mind-boggling. Nobody can dispute the excitement of scalping, love it or hate it!

The forex scalping strategy’s method is focused on taking advantage of tiny gains in pip value as frequently as possible during the busiest and most volatile trading sessions of the day.

Scalpers don’t hang onto their trades for more than a few minutes or a few seconds.

Fun fact: The term “Scalping” refers to the method used to accomplish its objectives. It’s not uncommon for traders to execute up to a few hundred trades in a single day in an effort to “scalp” several tiny profits from a sizable number of transactions.

Forex scalping is best suited for those who can devote hours of undivided attention to forex trading because it needs the trader to be there and look at the charts throughout the entire trading session. Ideally, during the moments when the forex markets are the most turbulent.

It is perfectly understandable that not everyone can handle a trading style that is so demanding and fast-paced as forex scalping.

Instead of traders aiming to grab big wins in the markets every time they trade, scalping is best suited for forex traders looking to generate a sizable overall profit from lots of tiny traders.

The fast chart below lists the most desirable traits of a scalper, as well as the traits that traders who should definitely avoid scalping exhibit.

How does scalping work?

Forex scalping is the practice of buying and selling foreign exchange while making money from quick, minor movements or frequently setting their profit goals as low as 10 pips.

Forex scalping calls for the trader to join the market with a larger lot size than they would, say, in a swing trade with an objective of several hundred pip movements. Scalpers can potentially increase their earnings by simply opening many transactions each day.

The traded pair must be volatile, meaning that it must offer enough movement for the scalper to profit from, in order for a scalping technique to function in the forex markets.

Below, we list the most popular currency pairings that forex traders use to practice their scalping techniques.

EUR/USD

USD/JPY

GBP/USD

USD/CHF

USD/CAD

AUD/USD

Forex scalping tools

Its strategy can either be manual, wherein the trader enters and exits trades manually, or automated, wherein the trader utilizes a pre-defined set of rules programmed into a scalping Expert Advisor that executes trades on their behalf.

The advantages of employing an automated system are clear.

For once, traders can use their forex strategy without having to face their monitors. To enter the markets, they don’t need to manually scan all the pairs and hunt for the right signals. Finally, it removes the possibility of human errors that can affect traders’ financial results due to emotional decisions.

On the other hand, manual trading can earn from making judgment calls, which involve leaving a deal open for longer than intended in order to profit more from the markets.

Is scalping a viable strategy?

One can reasonably assume that it does not suit everyone.

However, it can absolutely be a successful method if you have the correct attitude and perseverance.

It is more suited for inexperienced retail traders than other more complex methods that need a deeper understanding of the markets because of its low entry hurdles.

Forex scalping can be a terrific method if practiced with the right discipline and according to a set of established guidelines.

Let’s examine some of the benefits and drawbacks of forex scalping tactics in more detail.