Option Investor
Glossary

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Scalping

A type of trade in which a stock may be purchased and sold, or vice versa, within a matter of seconds or minutes. A trader enters into this type of trade with the intention of making a small amount, say 1/4 or 1/2 a point. Generally, this is done by making the spread between the bid and the ask. By making these types of trades multiple times a day, traders can make this a profitable practice. However, this can be a very high risk way to trade.