ELI5: Explain Like I'm 5

Scalping (trading)

You know how sometimes when you go to the store with your parents, you see people selling things outside the store? They might be selling things like candy or bracelets or toys. Well, some people do something kind of similar but with stocks!

When you buy a stock, you're buying a little piece of ownership in a company. Some people buy stocks and keep them for a long time, hoping that their value will go up and they can sell them for more money later. But some people do something called scalping, which means they buy and sell stocks very quickly, sometimes in just a few seconds.

They do this because they want to make a quick profit. They buy a stock when it's at a low price and then sell it as soon as they can once it goes up a little bit. It's kind of like running a lemonade stand but instead of selling lemonade, they're selling stocks.

Scalping can be tricky because sometimes the value of a stock doesn't go up like they were hoping or even goes down, which means they might lose money instead of making it. But for some people, scalping can be a way to make money quickly by taking advantage of small changes in the stock market.