What is Scalping?
Scalping is a trading strategy that involves buying and selling financial instruments within a very short time frame, often just minutes or even seconds. The primary goal of scalping is to make profits from small price changes in the market. Traders who use this strategy are known as scalpers. The essence of scalping lies in its fast-paced nature. Scalpers aim to capitalize on quick market movements, making many trades throughout the trading day which could sometimes amount to hundreds of transactions. Due to the high volume of trades, scalpers typically look for markets with high liquidity so that they can enter and exit trades rapidly without significantly affecting the market price. Key Features of Scalping High Frequency: Scalpers operate on a high-frequency basis, constantly monitoring the markets and placing a large number of trades. Small Profit Margins: Each trade aims for a small profit. While these gains are modest individually,Continue Reading