A trading strategy that attempts to make many profits on small price
changes. Traders who implement this strategy will place anywhere from 10
to a couple hundred trades in a single day in the belief that small
moves in stock price are easier to catch than large ones.
Traders who implement this strategy are known as scalpers. The main goal
is to buy (or sell) a number of shares at the bid (or ask) price and
then quickly sell them a few cents higher (or lower) for a profit. Many
small profits can easily compound into large gains if a strict exit
strategy is used to prevent large losses.
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