Scalping: meaning, definitions and examples
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scalping
[ หskรฆlpษชล ]
financial trading
Scalping is a trading strategy that involves making numerous trades throughout the day to profit from small price changes. Traders known as scalpers execute quick transactions, often holding positions for just a few minutes to capitalize on minor fluctuations in the market. This approach requires a keen understanding of market dynamics and is usually supported by sophisticated trading tools and platforms. The objective is to accumulate small profits that can add up to significant gains over time.
Synonyms
day trading, short-term trading.
Examples of usage
- Scalping has become increasingly popular in forex markets.
- Many day traders engage in scalping to maximize their profits.
- Effective scalping requires quick decision-making and rapid execution.
Translations
Translations of the word "scalping" in other languages:
๐ต๐น scalping
๐ฎ๐ณ เคธเฅเคเฅเคฒเฅเคชเคฟเคเค
๐ฉ๐ช Scalping
๐ฎ๐ฉ scalping
๐บ๐ฆ ัะบะฐะปัะฟัะฝะณ
๐ต๐ฑ scalping
๐ฏ๐ต ในใญใฃใซใใณใฐ
๐ซ๐ท scalping
๐ช๐ธ scalping
๐น๐ท scalping
๐ฐ๐ท ์ค์บํ
๐ธ๐ฆ ุงูุชุฏุงูู ุงูุณุฑูุน
๐จ๐ฟ scalping
๐ธ๐ฐ scalping
๐จ๐ณ ๅฅๅคด็ฎไบคๆ
๐ธ๐ฎ scalping
๐ฎ๐ธ scalping
๐ฐ๐ฟ ัะบะฐะปัะฟะธะฝะณ
๐ฌ๐ช แกแแแแแแแแ
๐ฆ๐ฟ scalping
๐ฒ๐ฝ scalping
Etymology
The term 'scalping' in a financial context traces its origins back to the mid-20th century when traders began using it to describe a style of trading characterized by rapid transactions and small profit margins. The word itself can be linked to the common practice of 'scalping' in other contexts, such as in the selling of tickets or merchandise at inflated prices. In essence, it implies taking a small part of a larger whole, akin to 'removing' a portion or 'scalping' it for profit. As electronic trading became more prevalent in the 1990s, scalping gained traction, with more traders employing this strategy thanks to advancements in technology that allowed for faster trade executions. Initially, scalping was more prevalent in traditional stock markets, but it has since evolved to dominate the forex and cryptocurrency markets as well.