#ScalpingStrategy Scalping consists of doing many trades. Each trade has a small profit objective. Because the profit consists of an accumulation of small profits, each loss must also be small. Scalpers tolerate a return/risk ratio as low as 1(i.e. to win 1 they are willing to risk 1). The combination of such a low return/risk ratio and small profits per trade imply that a scalper's win rate (his % of profitable trades) must be substantially above 50% in order to

generate a good profit.

needs to go down first to 3553-3ssA. Then, to be able to sell again, the bid-ask must go up to 3s55-3s56.

Scalpers argue that scalping has limited risk. Theyonly keep positions a very short time and a small market move is always more probable than a big one. Scalpers can usually trade at any moment in time. They do not have to wait for a signal given by a trading strategy.

Scalping is the trading style which comes closest to market making. A simple way to imagine a scalper at work is a trader who tries to buy at the bid and immediately tries to sell again at the ask. His profit is the spread.

This example shows the order book of the EuroStoxx 50 future. The bid priceis 3554

(the highest price buyers are willing to pay), In total they want to buy 335 lots at this

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