Scalping is a trading strategy that involves buying and selling an asset within a very short period of time, typically a few seconds to a few minutes. The goal of scalping is to make small profits on a large number of trades, rather than attempting to make a large profit on a small number of trades.An example of scalping would be buying a stock at $100 and then selling it for $100.05 a few seconds later. The trader would make a profit of $0.05 on the trade.Scalping is often used by day traders and high-frequency traders. It can be a very risky strategy, as small price movements can quickly wipe out any profits, but it can also be very profitable if done correctly.It is important to note that scalping is not suitable for all traders and investors, and it may not be allowed in certain markets. Before attempting to scalp, it is important to thoroughly understand the risks and to have a solid trading plan in place.
