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Scalping in the forex market involves trading currencies based on a set of realtime analysis. The purpose of scalping is to make a profit by buying or selling currencies and holding the position for a very short time and closing it for a small profit.
Many trades are placed throughout the trading day and the system that is used by these traders is usually based on a set of signals derived from technical analysis charting tools, and is made up of a multitude of signals, that create a buy or sell decision when they point in the same direction. A forex scalper looks for a large number of trades expecting a small profit each time. Scalping is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that.
(if a trader holds a position for more than a minute or two it is not considered scalping, but rather regular trading.)
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