What Is Scalping in Trading and Why Are So Many Using It?

If you were to spend a single day on Wall Street, you’d be witnessing quite the juxtaposition. While the scene at Wall Street looks consistent, with every broker operating in exactly the same way, you would in fact be witnessing a cacophony of strategies, with each trader navigating a unique set of data, instincts, and goals.

One of the most common strategies – especially in 2025 – would be scalping. Over the last year or so, the scalping strategy has surged in popularity, thanks in large part to advances in trading technology and increased market volatility. Where milliseconds can mean millions, scalpers are currently thriving in the market, taking advantage of each tiny fluctuation as and when it happens.

So what exactly is scalping, and why are so many using it? We’re going to take a look at the precise definition below, as well as a few pointers about how it can be applied by beginners.

Scalping: Explained

Scalping is a trading strategy geared towards profiting from minor price changes in the market, as opposed to waiting for large moves over long periods. Typically, it is performed intraday, where the main goal is to buy a number of shares at the bid or ask price, and then quickly sell them higher or lower for a profit.

In line with this, it’s all about speed, frequency, and precision. Traders who use this method open and close positions within seconds or minutes, targeting small but consistent gains throughout the day. If done correctly, these tiny profits can add up to a significant return, but it really depends on the trader themselves and their precision timing and execution.

How to Pull Off Scalping

This isn’t something anyone can do without the right tools. One of the most popular platforms for B2B traders, specifically, is Exness – with Exness insights offering an advanced technological edge, with over 500 developers, quants, and data scientists working to create mathematical models and algorithms for professional scalpers.

This is the kind of infrastructure that is needed to pull it off, not just in terms of speed, but in accuracy and strategy development. You would also need the right mindset. The scalpers who succeed are the ones who stick to their systems and don’t chase losses.

In another trading strategy like swing trading, you might have the luxury of letting a trade breathe, riding out minor drawdowns for bigger-picture gains. But in scalping, this simply cannot be done. There’s no room for hesitation, no margin for second-guessing, and no time to wait for the market to “come back around”. This is why it’s more of a strategy for experienced, disciplined traders who have a history with the market and know how to avoid getting caught up in its emotional rollercoaster.

Why are So Many People Using Scalping?

Having said that, as we mentioned in the introduction, more and more people are using the scalping trading strategy in 2025, to the point where – surely – not all of them can be fully experienced. The reason for this, again, falls largely into technology’s lap. Just as platforms like Exness use the latest tech to help formulate the right insights, technology itself has been the main contributor to democratising access to advanced trading strategies.

Just look at algorithmic trading. In 2025, thanks to advanced algorithms and AI-powered tools, traders don’t need to manually execute every trade anymore – instead using automated strategies to analyse their data and execute millisecond trades for them. This has similarly led to low-latency execution. In the world of scalping, even the smallest of delays in trade execution can result in missed opportunities or losses, but with current technology, low-latency trading has become far more common, which gives scalpers an edge in high-frequency markets.

As a result of this, the success rate of scalping has risen, and the attraction for investors along with it. Apart from automated technology, sophisticated platforms, and APIs, however, there could be another reason scalping has surged in popularity, and it’s all to do with the market itself. In today’s economic environment, the markets have become more volatile than ever, with the recent US tariffs doing a job of heightening this uncertainty.

For most traders, this isn’t exactly a good thing, but for scalpers, it represents opportunity. As we mentioned previously, scalpers aren’t too concerned about the market as a whole – to take advantage of the big picture, they look at the smallest picture imaginable, utilising the most marginal of price swings to make their profits. With this in mind, volatile markets can be exactly what scalpers need, offering frequent and pronounced movements, and allowing scalpers to make profits from small but rapid price changes.

Becoming a Scalper in 2025

Not every trader sticks to one strategy, of course. There will be many traders out there who will be utilising the scalping tactic now, while the markets are volatile, and may switch back to another strategy like swing trading or position trading when market conditions stabilise.

Right now in 2025, however, scalping has certainly become one of the more successful tactics seen in the market. Whether you should utilise it, however, will depend largely on your risk tolerance.

As we said, there’s plenty of technology out there that can help traders with scalping, but even with advanced, automated tech on your side, there’s still a significant risk factor involved. If you’re thinking about stepping into the scalping world, you still need to have a solid understanding of the market itself, along with a precise trading plan, and the mental fortitude to handle all the decision-making.

It’s important to note, of course, that while the potential for small, consistent profits is there, there’s also potential for small losses to quickly add up. Even though technology can help with automation, it’s still up to you to interpret market signals effectively, and understand how to react to be on the right side of them. It’s a risky business, for sure. So make sure you do all the research and only commit to it if you have the time, experience, and risk tolerance necessary to thrive.