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Definition of 'Scalping'

Scalping is a type of trading that involves taking advantage of small price movements in a security. Scalpers typically use high-frequency trading strategies to enter and exit positions quickly, and they often rely on technical analysis to identify potential trading opportunities.

Scalping can be a profitable trading strategy, but it also carries a high level of risk. Scalpers must be able to accurately predict price movements in order to be successful, and they must also be able to manage their risk effectively.

There are a number of different ways to scalp a security. One common strategy is to buy a security at a low price and then sell it at a higher price. Scalpers may also use short selling strategies, in which they sell a security that they do not own and then buy it back at a lower price.

Scalping can be a difficult and time-consuming trading strategy, but it can also be very profitable. If you are considering scalping, it is important to understand the risks involved and to develop a sound trading plan.

Here are some additional details about scalping:

* Scalpers typically use very small profit margins, so they need to make a large number of trades in order to be profitable.
* Scalping can be a very risky trading strategy, as scalpers can lose money quickly if they make a wrong trade.
* Scalpers often use leverage, which can magnify their profits but also increase their risk.
* Scalping is not suitable for all investors, and it is important to understand the risks involved before you start scalping.

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