How it works
A scalper picks pairs and times when the spread is tight and liquidity is deep. The strategy enters on a short-horizon signal (order-flow imbalance, micro-trend break, level reaction) and exits on a fixed-pip target or a tighter stop. Hold time is short by design: the longer the position lives, the more random noise erodes the small expected edge.
Example
Scalper takes 30 EUR/USD trades during the London session. Average win 4 pips, average loss 3 pips, win rate 60 percent. Expectancy per trade is (0.60 x 4) + (0.40 x -3) = 1.2 pips. On a standard lot that is roughly $12 per trade, $360 for the session, before spread of 0.6 pips per round trip eating about $180. Net session: $180. Now subtract slippage of 0.5 pips average and the strategy collapses to break-even.
What the strategy needs to work
- Spread under 1 pip on major pairs, ideally 0.6 or lower
- Execution latency under 100 ms to the matching venue
- No requotes and no slippage policy you cannot live with
- A win rate above 55 percent or an asymmetric risk-reward profile
- Discipline to stop trading when conditions degrade (news, low liquidity)
Why it matters
Scalping is the style most sensitive to platform quality. Spread, slippage, and latency are background noise for swing traders. For scalpers they are the difference between profit and loss. Volity’s Standard account quotes from 0.6 pips and routes to ECN liquidity, which is the floor a scalper needs.
