Scalp definition

A scalp in trading is the act of opening and then closing a position very quickly, in the hope of profiting from small price movements.

Traders who practise this tactic are referred to as scalpers, and will tend to make many scalps each day. The theory behind scalping is that small price movements are easier to predict than large ones.

Profits on scalps tend to be small, but losses can be kept to a minimum as strict rules are adhered to.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Contact us

Questions about opening an account:

+61 (3) 9860 1799
helpdesk.en@ig.com

Existing client questions:

+61 (3) 9860 1734 or +44 2078 960079

We're here 24hrs a day from 8am Saturday to 10pm Friday (GMT).