Searchable trading glossary
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Trading Glossary

Search common chart, candlestick, price-action, order, volume, liquidity and risk-management terms.

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Trading Styles

3 terms
Trading Styles

Scalping

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A very short-term trading style that aims to capture relatively small price movements, often over minutes.

Why it matters

Scalping requires strong liquidity, disciplined execution and close attention to spreads and transaction costs.

Example

A trader may use a 1-minute or 5-minute chart to manage a position lasting only several minutes.

Trading Styles

Day Trading

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Opening and closing trading positions within the same trading day.

Why it matters

Day traders focus on intraday price action and normally avoid carrying the position overnight.

Example

A position opened after the market opens and closed before the same day’s close is a day trade.

Trading Styles

Swing Trading

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A trading style that normally holds positions for several days or weeks to capture a larger price move.

Why it matters

Swing trading uses a longer timeframe than scalping or day trading and may tolerate wider price fluctuations.

Example

A trader enters after a breakout and holds while the stock remains in an established uptrend.