What is Scalping? Short-Term Trades from Seconds to Minutes

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

Scalping is a highly fast-paced trading strategy in financial markets where the period between opening and closing trades is only a few seconds to a few minutes.

Scalpers rely on short-term price fluctuations, aiming to trade the quickest market reactions. In this approach, a high number of trades and significant position sizes lead to small but frequent profits.