What Are Scalping and Pip Scalping Strategies?
Scalping or pip scalping (scalping, pip scalping) — from the English word scalping, meaning “to remove the scalp” or “to take the top layer” — is a short-term trading strategy used on foreign exchange (Forex), stock, and commodity markets.
How Does Scalping Differ From Pip Scalping?
Scalping differs from pip scalping primarily in profit target size: scalpers typically aim for 10–30 pips per trade, while pip scalpers target only 2–10 pips.
What Makes Scalping and Pip Scalping Unique on Forex?
The defining feature of scalping and pip scalping is the immediate closure of a trade upon reaching a minimal profit target. The full trade lifecycle — from entry to profit realization — often lasts less than one minute, and traders frequently execute a very high volume of orders.
To apply a pip scalping or scalping Forex trading strategy, traders must use highly liquid currency pairs with moderate volatility and tight spreads.
These strategies commonly rely on Forex indicators designed specifically for scalping.
FAQ
What is the main difference between scalping and pip scalping?
Scalping targets 10–30 pips per trade; pip scalping targets just 2–10 pips — making it even faster and more sensitive to spread and execution speed.
Which currency pairs are best for scalping?
Major pairs like EUR/USD, GBP/USD, and USD/JPY — due to high liquidity, tight spreads, and predictable intraday volatility.
Do I need special indicators for scalping?
Yes — standard trend-following indicators lag too much. Scalpers rely on fast-reacting tools like tick volume, price action oscillators, and custom multi-timeframe momentum filters.
