Scalping is a trading style that seeks small price gains through very short holding periods and repeated transactions. Positions often last seconds or minutes, although there is no universal time cutoff or required number of trades.
Small moves, demanding execution
A scalper may trade brief directional momentum or try to buy near the bid and sell near the ask. The latter attempts to capture the spread, but neither order is certain to fill. A resting order can also execute just before the market moves against it.
When gross gains per trade are small, fees, spreads and slippage take a substantial share. For example, a hypothetical completed trade earns 3 USDT before 2 USDT of total entry and exit fees: its result is 1 USDT, assuming no other costs. Frequent trading repeats costs as well as opportunities.
Short duration is not a loss limit
Scalping can be manual or automated and is often a form of day trading. It does not automatically imply high-frequency trading infrastructure or leverage.
Rapid price moves, thin order books, delayed data and failed exits can produce losses much larger than an intended small gain. A high winning-trade percentage alone says little without average gains, average losses and costs. The trading plan also needs position sizing and a response when execution or market conditions deteriorate.