Scalping (trading)

[1][2] Adding more onto  scalping is a trading strategy where traders make small profits by quickly buying and selling.

It’s popular in markets like foreign exchange and stocks, where traders take advantage of tiny price changes or bid-ask spreads.

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.

The profit for each transaction is based only on a few bips (basis points), so 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.

It is also similar to but differs from conventional pumping and dumping, which usually does not involve a relationship of trust and confidence between the fraudster and their victims.

Anatomy of a Scalping Scheme