Spread capture (also called 'scalp the spread') involves placing limit orders on both sides of the bid-ask spread to earn the spread difference. In liquid markets with tight spreads, high-frequency traders and skilled scalpers use this technique to accumulate small profits from market-making activity. This requires the fastest execution and minimal latency.
Post limit orders at the bid and ask, Profit from the spread difference when both sides fill, Requires extremely tight spreads (1-2 ticks maximum), Queue position matters — first in queue at a price level fills first, Inventory management: must actively hedge or flatten when one-sided exposure builds
Place limit buy at current bid, limit sell at current ask, In markets with 1-tick spreads and high volume, Fill on one side, immediately work the other side, Cancel unfilled orders quickly if market moves against you
Target: the spread (1-2 ticks per round trip). Stop: immediate exit if caught wrong-sided by more than 3-4 ticks. Time: exit all positions within seconds to minutes.
Tick-by-tick. This is not chart-based trading — it's order-book based.
True spread capture is dominated by HFT firms with colocation and sub-millisecond execution. Retail traders can approximate this in slower markets but need to be extremely disciplined about inventory management.
The Bollinger squeeze scalp identifies periods when Bollinger Bands contract to their narrowest width, indicating extremely low volatility that typically precedes a sharp expansion. By measuring the bandwidth or using a Keltner Channel inside the Bollinger Bands as a squeeze indicator, traders anticipate the explosive breakout and scalp the initial directional move that follows the compression.
1-minute scalping uses pure price action — candle patterns, micro-structure breaks, and support/resistance — on the 1-minute chart to capture small moves (2-10 ticks in futures, 5-20 pips in forex). This is the fastest form of discretionary trading, requiring rapid decision-making, tight spreads, and minimal latency.
VWAP (Volume Weighted Average Price) scalping uses the VWAP line and its standard deviation bands as dynamic support/resistance for intraday scalp entries. Institutional algorithms weight their execution toward VWAP, making it a self-fulfilling level. Price below VWAP = short bias; above = long bias.
Session transition scalping exploits the volatility and liquidity shifts that occur when one major trading session hands off to the next. The overlaps between the Asian-to-London and London-to-New York sessions create predictable patterns of expansion, reversal, and liquidity grabs as new participants enter and reprice the market based on their regional order flow and sentiment.