Scalping on the Forex market is a trading strategy used by traders to buy a currency pair and hold it for a short period of time in order to make a profit. Forex scalpers hope to make a large number of transactions, each time earning a small profit.
Forex scalping usually involves a large number of levers, so even a small change in the price of a currency pair brings significant profit. Scalping strategies in the Forex market can be manual or automatic. The manual system assumes the presence of a trader sitting behind a computer screen in search of signals and their interpretation (whether it is worth buying or selling). In an automated trading system, the presence of a trader is not required; the software itself searches for signals to enter the market and interprets them according to the specified parameters.
It is believed that automated trading does not take into account the role of human psychology in trading, which is very important for scalping, because it is not always easy for a trader to navigate in a rapidly changing market environment.