Scalping

Scalping is a short-term trading strategy that involves making numerous trades throughout the day to profit from small price movements in highly liquid assets. Traders, known as scalpers, typically hold positions for just a few seconds to minutes, relying on quick execution and tight spreads. This strategy requires a deep understanding of market dynamics, technical analysis, and often the use of automated trading systems to capitalize on fleeting opportunities while managing risks effectively. Due to the rapid-fire nature of scalping, it can be mentally and physically demanding, requiring intense focus and discipline.

» Forex Dictionary - Glossary of Terms & Definitions