Scalping
Scalping is ultra-short-term trading where you hold positions for seconds to minutes, aiming for tiny profits per trade but doing dozens of trades per day.
Understanding the Concept
Scalpers are the hummingbirds of trading. They're in and out so fast most people don't even see the setups. A 0.5% move is a win. Do that 20 times a day and you're up 10%. But here's the catch: fees destroy scalpers. If you're paying 0.1% per trade and you do 40 trades (20 round trips), that's 4% in fees. You need a killer win rate and tight execution. Scalping requires level 2 order book data, low latency, and maker fee rebates (getting paid to provide liquidity). It's not for beginners. One moment of hesitation or a lag spike can wipe out a day's profits. If you can't stomach losing money 40% of the time, scalping will eat you alive.
Real-World Example
Bitcoin's at $45,000. You buy 0.5 BTC at $45,000 when you see a big buy order hit. Price jumps to $45,050 in 30 seconds. You sell for $25 profit. Repeat 30 times. That's scalping.
How Strykr Helps
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