Scalping

Scalping is a short-term trading strategy that involves making numerous small trades to profit from minor price movements. Scalpers typically open and close positions within seconds or minutes. They aim to accumulate small gains that can add up over time. This approach requires high concentration, quick decision-making, and access to reliable trading technology for fast execution.

Scalping is commonly used in highly liquid markets like Forex, where tight spreads and frequent price fluctuations create opportunities. However, this strategy also involves significant risk. The small profit targets mean that losses can quickly outweigh gains if trades are not carefully managed.

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_{Disclaimer: This is a definition of the term only and it is not trading advice.}