Crypto glossary
Scalping
Scalping is an ultra-short-term trading style that aims to capture many tiny price moves, holding positions for seconds to minutes.
A scalper makes dozens or hundreds of trades a day, targeting gains of a fraction of a percent each. The work relies on reading the order book, tape and order flow, on 1-minute or tick charts, and on very fast execution. Many scalpers trade the most liquid crypto pairs, such as BTC and ETH perpetuals, where spreads are narrow and large orders fill without moving the price.
Costs decide everything. With profit targets so small, the difference between paying maker and taker fees, or a spread of one tick versus three, can turn a winning strategy into a losing one. Professional scalpers negotiate fee tiers, use rebates and often run automated systems located close to exchange servers.
For individuals, scalping is among the hardest styles to sustain. It competes directly with market makers and high-frequency firms, is mentally exhausting and, when combined with high leverage, can produce large losses from a single slip in execution or a sudden spike.
Example
A scalper buys BTC perpetuals with a limit order, sells 0.08% higher two minutes later and repeats the setup 40 times during the session, paying maker fees on both sides.