Scalping is a high-frequency trading strategy based on extracting profit from minimal price fluctuations. A scalper opens and closes positions within seconds or minutes, making dozens or even hundreds of trades in one trading session. Average profit per trade ranges from 0.1% to 1%, however, with proper risk management and high frequency of operations, cumulative income can significantly exceed results of long-term strategies.
In the cryptocurrency market, scalping has gained particular popularity due to 24/7 exchange operation and high volatility of digital assets. Unlike traditional financial markets, cryptocurrencies trade around the clock, allowing scalpers to find profitable entry points at any time. Futures trading with leverage up to 100-125x opens opportunities to multiply profits even from micro price movements — a 0.5% price change with 20x leverage turns into 10% to the deposit.
The key advantage of scalping is minimal exposure to market risks. Positions are held for such a short time that global news and sharp trend reversals practically do not affect the result of an individual trade. A scalper works with technical analysis, support and resistance levels, candlestick patterns and volatility indicators. Success in scalping is 80% determined by reaction speed and quality of tools the trader uses.