What does scalping mean in trading?

Asked 3 years ago

What is scalping, and is it a good trading strategy for beginner traders?

Aleksandar Stevanović

Tuesday, November 09, 2021

In terms of day trading, "scalping" is a style of trading that focuses onmaking high volumes off of small profits. In other words, this strategy makes it possible for its user to profit off of small price changes and generate a fast profit off of reselling.

However, for this strategy to be successful, one must have the right tools (the stamina to place numerous trades, a direct-access broker, and a live feed). Since one significant loss could eliminate the numerous smaller gains the trader worked to obtain, scalping requires that a trader have a strict exist strategy.





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