Scalping Definition – Explanation for Beginners

What is Scalping – Definition

Scalping Definition: Scalping is a trading technique within day trading that involves frequently speculating within a short period of time, sometimes even a few seconds, to profit from market fluctuations. A trader who practices scalping is called a scalper. They typically make small gains repeatedly.

The scalper's objective is not to maintain winning positions in order to amass gains as soon as the market is in his favor. The main goal of the scalper is to set up an efficient trading strategy which consists of betting on a large number of transactions that only win low positions with high gains.

Scalping is based on the principle of lower risk exposure. Indeed, as the trader spends very little time on the market, this reduces the risk of loss in the event of a strong variation in prices. In addition, scalping also considers the fact that smaller market movements are easier to anticipate than larger ones. Moreover, these occur on several occasions. Scalping is most often practiced on products such as Futures or CFDs.

Synonym of Scalping

Scalping is synonymous with “micro trading” or “very short-term speculation”.

Etymology of Scalping

Scalping comes from the English scalp which means “scalp”. It is today an anglicism which designates the fact of trading aggressively by anticipating small price variations over very short periods of time.

Scalping Terms

• PIPS in Scalping Trading – Definition: A pip, or Point Interest Point, also known as a Point In Percentage, refers to the movement of a market value to the fourth decimal place. Understanding pips is crucial for scalping trading, as this technique relies heavily on leverage.
• Intraday Trading – Definition: Intraday trading is a trading technique that involves opening and closing positions within the same trading day. It's important to note that the definition of intraday trading differs from scalping. However, scalping is a strategy that falls under the umbrella of intraday trading.
• Minute Scalping Trading – Definition: This is a scalping method that involves entering and exiting the markets in less than one minute.
• CFDs in Scalping – Definition: A CFD, or Contract for Difference, is a trading method for derivative products. It consists of an exchange contract entered into by two parties, in which one buys and the other sells. The purpose of this contract is to ensure that the seller pays the buyer the difference in the value of an asset at the opening and closing of the contract.
• Ticks in Scalping – Definition: In scalping, a tick is the smallest price movement of an underlying asset. Most often, a tick corresponds to one pip.
• Scalping the DAX – Definition: Scalping the DAX is a scalping technique applied to the DAX, or German stock market. It comprises the 30 largest companies in this European country. The DAX is the equivalent of the CAC 40 in France.
• Plus500 Scalping Definition: Plus500 is a global trading tool on which scalping can be practiced.

Indicators Used in Scalping

• Simple Moving Averages in Scalping – Definition: Simple moving averages in scalping are an indicator that shows the average value of a security over a specific period. These averages are obtained by calculating several indices such as the opening price, closing price, etc.
• Scalping Candlestick – Definition: In scalping, a candlestick is a price movement that takes the form of a candle. A red candlestick represents a falling price, and a green candlestick represents a rising price. A group of candlesticks on a chart is called a Japanese candlestick pattern.
• Ichimoku Trading in Scalping – Definition: This is a variation of the Ichimoku Kinko Hyo technique. This method involves studying the stock market and following trends. For this technique, trading platforms must be used. MetaTrader 4 or MetaTrader 5. It is especially for the Forex market that the Ichimoku approach is most effective.
• Pivot Point in Scalping Trading – Definition: A pivot point is a psychological zone where the market is in equilibrium. Identifying pivot points helps to indicate market trends. The pivot point technique is particularly popular among traders, even though it is psychologically driven.
• Ichimoku Kinko Hyo Scalping – Definition: Ichimoku Kinko Hyo is a market analysis method that allows traders to quickly identify stock market trends, whether upward or downward. This rapid market analysis enables traders to better capitalize on trends and increase their chances of success. This technique was invented by a Japanese financial expert. While initially primarily used for day trading, the technique can also be effective in scalping.

How Does Stock Market Scalping Work?

Scalping differs from traditional trading in terms of the duration of the trading as well as the multiple positions that will be taken.

Scalping is a trading method based on PIPS, where the value is at the fourth digit after the decimal point. The trader must repeat opening a position frequently to hope to make gains.

Moreover, if it is possible to multiply its positions, it is because of the duration of the trading. A day trader assumes his position throughout the session. But for scalping, the time between opening and closing a position often does not exceed a few minutes.

For example, in the case of a value of 1,0002 at the start of the position, the scalper will stop his order at 1,0006 within a few seconds or minutes. This trading system takes all its interest by taking positions repeatedly. Therefore, the scalping trader must be reactive and organised. He juggles on a short-term market while observing the ticks by which he will orient his strategy throughout the day.

Scalping vs Day Trading – What Differences and Which is More Interesting?

The definition of Scalping and Day Trading can be confusing as both are based on the same concept. These two trading strategies both involve opening and closing a position within the same trading day. What distinguishes them, however, is that scalping is one of the strategies used in Intraday (Day Trading). Also, the day trader will not close a position for a long time.

Beginner traders are then often faced with this dilemma, choosing between Scalping or Day Trading.

To do effective scalping, the trader must stay alert in front of his screen and react to each tick of the price. Scalping is very tedious, and also requires a lot of attention and perseverance.

The Day Trader can stay on the same position for several hours. So he doesn't have to stay on the job checking the numbers every minute. The day trader can indulge in other activities while enjoying trading. Obviously, his gains will be less, and the same goes for the risks he takes.

The trader is therefore free to choose the trading method that suits him. There are many scalping techniques to generate gains in the stock market.

The Different Scalping Methods to Win in 2026

There are several indicators in the world of trading, and they are very essential for carrying out operations. Thanks to indicators, it is easier to do market anticipation and build an effective strategy to take winning positions. It is through these indicators that the trader can adopt the appropriate scalping method to make gains.

To get started on the market with peace of mind, the trader can choose from a whole arsenal of tools to carry out trading activities. Here is a list of scalping methods that allow you to trade with confidence:

Ichimoku scalping – Definition

The Ichimoku method is one of the best known in terms of scalping. It debuted in the 40s and was designed by a Japanese financial journalist. His method is to know the stock market trends at a glance. If the Ichimoku method was designed for day trading, it can also be used in stock market scalping.

The Trade Tendency or Trade in trend – Definition

The trend trade, also called against trend, is a trading strategy that is based on large market flows and adjusts its trade by open positions in rising or falling trends depending on the strategy.

Scalping Inside Bar – Definition

The Inside Bar method in scalping is a strategy that allows you to take positions with the help of three candles on a chart. With only two candles, it is easier to anticipate the third. Indeed, the level of the latter compared to the previous offers an overview of the speed of the rise and fall, thus guiding the position taken.

Tline Scalping – Definition

Tline scalping is a strategy based on a 5-tick chart. It is a method that can also be applied in 8,13 and 21 ticks. It is based on a technique for reading the chart by removing falling and rising areas to readjust positions. If this technique is optimized, it can guarantee many gains.

DAX 40 Scalping – Definition

This scalping strategy only applies to Dax. For good reason, the great volatility of this stock market makes it easier to practice scalping. To practice it, it is necessary to determine three simple moving averages MMS7 MMS20 MMS200. The duration of the operation will last 5 minutes. The MMS 200 demonstrates the trend towards which the market is tending. If the price is below the 200 MMS, it means the trend is up. The MMS7 and MMS 20 will be used to confirm or invalidate the positions taken on the market.

1 Minute Scalping – Definition

This is the simplest and most common technique in scalping. 1 minute scalping is very common in the Forex market. To practice this technique, the trader opens an order and resubmits it right after earning pips. This is a very effective technique for traders who are just beginning to trade. This technique nevertheless requires organization and precision because of the large number of positions taken to enlarge its capital.

Why Do Scalping?

Scalping or micro trading is an excellent way to practice trading in case we are not patient enough to practice day trading. Thanks to scalping, it is possible to enlarge your capital for a fairly short period of time. This helps to minimize losses, knowing that Pips represent minimal values ​​in speculation.

However, scalping requires a lot of concentration, especially when it comes to scalping in the Forex market. As the scalper carries out several operations during a day, it is important for the trader to have an investor profile with strong nerves.

What are the A's?vantages and the Disadvantages of Scalping or Micro Trading?

Scalping presents thevantage allows the trader to make gains more quickly, which is a more exciting trading method. Also, losses are lower in scalping than in traditional trading. Moreover, it is possible to practice scalping using significant capital or leverage, which allows you to takevantage of batches. This is a great way to earn even more from scalping.

Scalping only allows very limited gains because it only plays on the minimized market fluctuation. Therefore, it will be necessary to multiply operations over several days to make significant gains. Also, by choosing to use leverage in scalping, the risk of capital loss is also great.

Here is a table to better summarize the avantages and disadvantages of scalping:

Practical Example of Scalping

We will do a simulation as an example to help you understand the definition of scalping as well as the strategies to adopt for the scalper. Let's take the case of a CAC40 future contract at €5 per point, and your scalping strategy is 5 points, i.e. a gain of €25.

With the Broker you have chosen, let's assume that the prices for Index Futures derivative products amount to €2 per contract. Therefore, a round trip will cost you 4€. The €25 profit – €4 brokerage fee = €21. By performing this process several times a day, you can gain in profitability.

What are the Best Brokers for Scalping?

How To Do Scalping – Step by Step Steps

What Tools to Use for Scalping Trading?

Now that you know the definition of scalping, you can now take an interest in the slightly more technical aspect of this notion. To practice scalping, you need a dashboard to perform stock chart analysis.

For this, you can use the most common software for trading: MetaTrader 4 and MetaTrader 5By using tick charts, you will be better able to make informed decisions about your position.

In case of DAX 40 futures scalping, you can take a position on a Tick chart using the MetaTrading Edition Supreme version.

To practice scalping without risk, it is also wise to set up a Stop Loss. Therefore, it is advisable to choose a broker that offers this protection when you take a position. This will prevent you from incurring significant losses. Note that the best broker for beginners eToro does not allow the practice of scalping.

How to Get Good at Scalping in 2026?

Understanding the definition of scalping is not enough to practice it safely, although it is an integral part of the basics of trading. Indeed, scalping is not something that can be learned easily. Only the basics of this trading technique are taught on the Internet. But only by practicing it can we better understand its concept and gain experience.

You need to be stress resistant and know when to cut your positions for scalping. And it is only under real conditions that you can experience this. This is why it is more prudent for you to test scalping by registering for a demo account to see how it really works in practice.

Indeed, the short-term stock market is something that is not easy to understand. However, you can also take trading training on platforms to better understand the concept of scalping. Other articles on our site traderfrancophone are also a great help in helping you learn about trading.

What is Scalper?

A scalper is the name for people who practice scalping.

What Indicators for Scalping?

The main scalping indicators are: Ichimoky Scalping, Bollinger Bands, Heiken Ashi Scalping, Renko, RSI, Moving Average, MACD, Pivot Point, Scalping Support and Resistance, Finobacci.

❓ How To Do Scalping?

To do scalping, you have to choose a good Broker for scalping, open an account, deposit funds and practice scalping.

What Moving Average for Scalping?

The moving averages needed for scalping are 5-8-13.