Scalpingwhen used in reference to trading in securitiescommodities and foreign exchangemay refer to.

Scalping is the shortest time frame in trading and it exploits small changes in currency prices. This procedure allows for profit even when the bid and ask don't move at all, as long as there are traders who are willing to take market prices. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds. The role of a scalper is actually the role of market makers or specialists who are to maintain the liquidity and order flow of a product of a market.

The profit for each transaction is based only on a few pips basis pointsso scalping is typically conducted when there are large amounts of capital and high leverage or there are currency pairs where the bid-offer spread is narrow.

Whenever the spread is made one or more party must pay it paying the cost to receive some value on completing the transaction quickly and some party or parties will receive that money as profit. 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.

Scalping is analogous to front runninga similar railway stocks in stock market india practice by broker-dealers. It is also similar to but differs from pumping and dumpingwhich does not involve a relationship of trust and confidence between the fraudster and his or her victims. From Wikipedia, the free encyclopedia.

This is the latest accepted revisionreviewed on 16 Stock trading scalper This article is about trading in securities or commodities.

Scalping (trading) - Wikipedia

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