ELI5: Explain Like I'm 5

Scalping

Scalping is when you cut a very small piece off of something, like your hair or a piece of paper. But when we talk about scalping in other contexts, like in the stock market, it means something slightly different.

In the stock market, people who scalp are trying to make a quick profit by buying something and then selling it very quickly for a tiny profit. It's like buying a toy for a dollar and then selling it to a friend for a dollar and five cents. It's not a huge profit, but you made some money so it's worth it.

People who scalp in the stock market often do it with really fast computers that can buy and sell stocks super quickly. They are trying to take advantage of tiny price changes that happen very quickly. It's like if your mom was trying to buy a toy online and you kept refreshing the page super fast to try and get it for a cheaper price. It's kind of like a race to be the first one to buy or sell something before the price changes again.

Scalping can be risky because it's like trying to catch a really tiny fish in a big pond. Sometimes you might make a little bit of money, but sometimes you might lose money too. And, just like with catching tiny fish, it takes a lot of quick reflexes and patience to be successful.

Overall, scalping in the stock market is a way for people to try and make a little bit of money really quickly by taking advantage of tiny price changes. It can be risky, but some people really enjoy the excitement of trying to make a quick profit.
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