Scalping Strategy

Scalpers monitor price action across hundreds of markets, looking for short-term momentum, mean-reversion setups, or micro-inefficiencies. When they spot an opportunity — a sudden dip they expect to reverse, or a price lagging behind related markets — they hit the order book with a market order, capture a small move, and exit. Individual profits per trade are tiny, but compounding across hundreds of trades per day produces meaningful returns.

What separates scalpers from algo traders is how they execute. Scalpers are taker-dominated — the majority of their orders are market orders that consume existing liquidity. They pay the spread rather than earning it. This makes speed critical: scalping opportunities disappear in seconds, and any latency disadvantage means worse fills. Position sizing is deliberately small and stop-losses are tight. A scalper who holds too long, sizes too large, or lets losses run can erase weeks of accumulated gains in a single session.

On prediction markets, scalpers thrive in active markets with high volume and tight spreads. They exploit the micro-movements that occur as new information flows in — a poll release, a news headline, or a shift in sentiment. Their trades are often too small and too fast to register as significant individual positions, but their aggregate activity contributes meaningfully to price discovery.

Scalpers on the platform are identifiable by their extremely high trade counts, very short average holding times (often under 8 hours), low maker-order percentages (under 50%), and consistent activity across a broad set of markets. They rarely hold positions overnight and prefer markets with enough volume to support rapid entry and exit without slippage.