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Scalping

Scalping Definition

Scalping, when used in reference to trading in securities, commodities and foreign exchange, may refer to

  1. a fraudulent form of market manipulation
  2. a legitimate method of arbitrage of small price gaps created by the bid-ask spread.
  3. a legitimate method of trading based on quick momentum trades triggered by order flow reading setups


Additional meaning of Scalping:

Scalping in this sense is the practice of purchasing a security for one's own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit upon the rise in the market price following the recommendation.









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