Verbull Word of the day
Finance glossary

Scalping

Trading · advanced
Definition

A strategy of making many small trades to profit from tiny price changes.

Scalping is an ultra-short-term strategy where traders enter and exit positions within seconds or minutes, aiming for small but frequent gains. It relies on high volume, tight spreads, and low transaction costs. Scalpers often use leverage and automated tools to make profits meaningful.

In a sentence

Scalping meant darting in and out of the market dozens of times an hour, banking a few cents on each trade.

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