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What is scalping?
Scalping is generic term used to describe a very short-term trading style where a trader looks to ‘skim off the top’, i.e. take small but frequent profits out of the market. The theory is that small price movements are easier to predict than larger ones.
Traders scalping the market fall into the ‘day trader’ and ‘high frequency’ trading categories. This is because they generally prefer not to hold positions overnight, but rather open and close their trading positions intraday whilst looking to accumulate profits through frequent intraday trading activity.