Scalping Definition

Scalping is a short-term trading strategy that aims to profit from very small price movements, often within seconds or minutes.

What is Scalping?

Scalpers typically make a high number of trades per day, each targeting small gains.

This strategy requires tight spreads, fast execution, and strict discipline due to the frequency of trades.

A trader opening and closing dozens of positions within an hour to capture small price moves is scalping.

A sector is a group of companies operating in the same segment of the economy, such as technology, energy, or healthcare.

Securities are tradable financial instruments representing ownership, a creditor relationship, or rights to ownership, such as stocks and bonds.

A sell limit order is an instruction to sell an asset at a specified price or higher.