Trader's Glossary


Scalping is a trading strategy in which traders look to profit from small changes in price by rapidly opening and closing a large number of positions in every trading session. In this way risk is limited and profits accumulate due to the sheer volume of trades placed. Scalpers can either trade manually, or with the use of automated strategies. Increasingly scalpers at the retail level are turning towards Expert Advisors in order to automate their scalping strategies. This is because speed is the primary factor in identifying scalping opportunities and trading bots have a natural advantage over human traders in this respect. Also, manual scalping can be extremely demanding both in terms of the kind of prolonged attention required to consistently profit, and the emotions that arise from deficits in correct trading psychology. A well programed EA can eliminate these human errors and lead to a much more efficient scalping strategy.