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Microscalping

A
Written by AJ
Updated over a month ago

What Is It?

Microscalping refers to a trading tactic where a trader attempts to capture very small price movements using very large size within extremely short time frames, often just a few seconds. The goal is typically to exploit how simulated fills work rather than to execute a sustainable trading strategy.

This is not the same as genuine scalping, which involves short-term trades without attempting to manipulate platform behavior. Genuine scalping is permitted as long as it reflects realistic market activity and order execution.

What Happens If I Microscalp?

Lucid Trading uses automated systems to detect Microscalping patterns. You will be flagged if:

  • More than 50% of your profits are generated from trades held for 5 seconds or less

Enforcement Process:

  1. If your account is flagged, Lucid will initiate a manual review to verify whether the behavior violates company policies

  2. If bad faith activity is confirmed, you may receive a written warning

  3. If flagged behavior continues after a warning:

    • All profits from microscalping activity will be forfeited

    • You may be permanently restricted from using Lucid Trading services

Traders may request an appeal if they believe the flagged activity was incorrectly identified.

Why Is It Prohibited?

Microscalping is not a valid or transferable strategy in the live market. Lucid Trading is committed to helping traders develop realistic, long-term strategies that are viable in professional trading environments.

Allowing Microscalping:

  • Undermines the integrity of the evaluation process

  • Makes it difficult to identify genuinely profitable traders

  • Threatens the sustainability of the firm

Lucid Trading’s mission is to support traders building durable careers, not to facilitate system gaming.

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