Scalping is one of the most popular types of trading. In this article, we will talk about order book scalping. What is the difference between order book scalping? Who scalpers are? Read more about it in our article.

Scalping in simple terms

There are different types of trading. Intra-day trading is trading in which positions are closed by the end of the trading session. Open positions are not transferred to the next day.

Since trades take place within the day, intra-day traders are in position for a short time. Sometimes the trade lasts less than a minute. So intraday traders are called scalpers. It's like they're cutting off a small profit by market standards with a scalpel. The terms "scalping" and "day trading" are often used as synonyms.

CScalp users are professional traders. Therefore, we write about scalping as a profession.

Professional scalping (in the terms of the CScalp team) is a type of intra-day trading where a trader works manually (not a trading robot).There are 3 main signs of scalping:

  1. Trading takes place within the day, positions are not transferred to the next day.
  2. Scalping traders make the trading decision according to the order book and clusters.
  3. Every day trading is based on the daily risk (drawdown).
It doesn't matter what kind of scalping strategy is used. If the style of trading fits the characteristics, it can be considered as scalping.

It doesn't matter what exchange is used. Many scalpers trade on stock and cryptocurrency exchanges.

Intraday scalping

If a trader transfers its position to another day, it’s not the scalping strategy, or the trader combines some types of trading.

Usually scalpers, having gained experience, begin to combine different types of trading. It is a normal practice when scalpers with several years of experience start making trades for two or three days and maintain an investment portfolio.

After the creation of cryptocurrency exchanges, the question arose: what is trading session about? Trading began to go around the clock, without breaks and weekends. However, nothing has changed for the scalper. Human capabilities are still limited. The trader gets tired, the trader needs rest. Therefore, we should not talk about an exchange trading session, but about the trading day of a particular person. There should be no open positions at the beginning and end of the day in terms of scalping.

Order book for analyzing

According to the CScalp team, scalping with the order book is impossible today without analyzing the order book and clusters.

Professional scalpers track and keep opened dozens of order books simultaneously. This is one of the reasons for the popularity of large monitors among scalpers.

Drawdown in trading

Each prop trader sets the maximum drawdown before the start of the working day. If the drawdown exceeds the specified one, the trader will finish the work session.

Drawdown – the amount of money, with the loss of which the trader ends the working day.

Drawdown in scalping serves as the main risk control mechanism. Proprietary firms' drawdowns are controlled automatically, private traders control the risks themselves.

Scalping and Scalping terminals

Scalpers are professional traders who earn their living by scalping. Scalping terminals are trading terminals for scalping and it is the workspace where scalper spends all day.

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