A market chart is displayed on a computer screen on the floor of a stock exchange. (Photographer: Daniel Acker/Bloomberg)
Scalping is a strategy that traders use to profit from minor price changes in equities.
Traders adopting the trading style must have a strict exit strategy, as one large loss could eliminate the many small gains, according to Investopedia.
So how can traders use scalping to maximise returns while reducing risks? Amit Gulecha, a trader with 15 years experience in the market, explained how regular traders could adopt the strategy at the Traders Carnival event in Mumbai.