Scalping
Scalping the market usually involves high frequency trading. The objective is to trade very actively to make small and very frequent profits. Traders that use this trading style are looking to take advantage of the smallest price fluctuations in the market. A trader or a trading robot could make hundreds of trades per day. Scalpers and high frequency trading robots typically have tight stop losses and very small profit targets. This is your rapid fire style of trading and the duration of trades can range from seconds to maybe up to an hour. It depends on the technology used and market conditions. This type of trading is nearly all technical based and trading is usually done on sub 15 minute charts. Latency and price slippage can critically affect this type of trading style. Any delays in execution can result in a significantly worse price. Which can mean the difference between a profit and a loss. Scalping is also the most sensitive to changes in liquidity and widenin
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