Scalping

[Bhut]

Hi,

I understand what a swing trade is. Enter at point A and moves to B. Hopefully i'm on the right side of the move!

Can some one define scalping for me please.

Cheers

Ian

[Brent]

Hi,

I understand what a swing trade is. Enter at point A and moves to B. Hopefully i'm on the right side of the move!

Can some one define scalping for me please.

Cheers

Ian

I believe the principal is exactly the same thing.
The defining part of a swing trade, is the length, and duration of the move.
With a swing trade, you are trying to pick up on a significant move, just before it happens, or at least get in early, to benefit from as much as you can.
The odds will either be coming in, and then "swing" and go the other way, or they will be stagnant, and then a big move happens on them.
A swing trader, will be hoping to wait for this moment, and take full advantage of the big move.

Scalping, is just trading back and forth, no matter what the price is doing. Get in, get out. If the price is stagnant, you are trying to get matched on both sides of the market. The price doesn't need to move significantly to make money. You could even call it a very small range trade.

Basically, I would suggest they are the same thing. Just that a "typical" swing trader, would be in the market longer, looking for less trades, bigger %s. A scalper, will be happy to keep the turnover high, and take a tick wherever he can get it, no matter what the odds are doing.

[bugrit]

Scalping in the financial markets was always said to be taking the spread, so if RBS was 120p to buy and 121p to sell, a scalp was to buy at the sell price and sell at the buy price.
If we put that into Betfair,you lay at the back price whilst backing at the lay price. This could also be called making a book on 1 horse or player, although many (most) people refer to any trade aiming for a single tick profit as a scalp.