1

scalp

noun \ ˈskalp \
Updated on: 13 Oct 2017

Definition of scalp

1 a :the part of the integument of the human head usually covered with hair in both sexes
b :the part of an animal (such as a wolf or fox) corresponding to the human scalp
2 a :a part of the human scalp with attached hair cut or torn from an enemy as a token of victory
b :a trophy of victory or accomplishment
3 chiefly Scotland :a projecting mass of bare ground or rock

Recent Examples of scalp from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'scalp.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of scalp

Middle English, crown of the head, perhaps of Scandinavian origin; akin to Old Norse skālpr sheath; akin to Middle Dutch schelpe shell


2

scalp

verb

Definition of scalp

transitive verb
1 a :to deprive of the scalp
b :to remove an upper part from
2 :to remove a desired constituent from and discard the rest
3 :to buy and sell so as to make small quick profits
  • scalp stocks
  • scalp grain
; especially :to resell at greatly increased prices
  • scalp theater tickets
intransitive verb
1 :to take scalps
2 :to profit by slight market fluctuations

scalper

noun

Examples of scalp in a Sentence

  1. Some members of the tribe were scalped by the attacking warriors.

Recent Examples of scalp from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'scalp.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of scalp

1676


Financial Definition of SCALP

scalper

What It Is

The term scalpers refers to securities traders who manipulate the market.  Scalpers may also refer to traders who earn relatively small amounts of money from the arbitrage between bid prices and ask prices on securities.

How It Works

In the case of market manipulation, scalpers may buy a security, then recommend the security to investors and take a profit on the difference between their price and the sales price once the market demand raises the price.

Scalpers may also act as market makers, making a spread between the bid price and the ask price of a security.  The role of market makers is to provide liquidity in the trading of securities, taking bids and settling on prices.  The profits are realized from the difference between the ask price and the bid price on a security.  The arbitrage gain on these spreads is usually small and short-term.

Why It Matters

Scalping to profit from the increase in the price of a security as a result of manipulating the market is a fraud under the Investment Advisors Act of 1940.  The prohibition applies to registered and unregistered investment advisors.

The scalper's business actually overlaps and competes with the designated market maker.   However, because the market maker is usually designated by the exchange and has specific, proprietary information about the security, and has substantial capital resources, the general scalper is at a disadvantage.


scalp

What It Is

Scalping is a form of day trading that involves earning small profits on large volumes of securities.

How It Works

A day trader is a very active securities trader who holds securities for a very short time (generally one day or less). If a day trader wants to scalp, he or she would buy and sell shares when there are small changes in the stock price. For example, if the price of Company XYZ rises from $41.50 to $41.55, the difference is only a nickel. To most investors, that's not a compelling change, but scalpers capitalize on this by buying 100,000 shares at $41.50 and selling at $41.55 for a profit of $5,000. If this price change takes place in the course of just one trading day, which is entirely possible, the trader can make $5,000 in a day. Often, the price changes are even smaller than $0.05 a share for scalpers to profit.

Why It Matters

Scalpers execute most of their transactions online, and it is important to note that the number of trades influences the amount of brokerage commissions paid. Some day traders avoid using market makers or brokers by purchasing memberships in direct-access broker systems. These systems send orders to an electronic communications network (ECN), which is a computerized matching system that allows traders to advertise bid or ask prices and execute trades.

Day trading requires analytical skills and discipline, and many people have made day trading a career. However, day trading is exceptionally speculative and therefore requires considerable financial and emotional stamina to withstand substantial risk.



SCALP Defined for English Language Learners

scalp

noun

Definition of scalp for English Language Learners

  • : the skin on the top of your head where hair grows

  • : hair and skin that is cut or torn from the head of an enemy as a sign of victory


scalp

verb

Definition of scalp for English Language Learners

  • : to remove the hair and skin from the head of (an enemy) as a sign of victory

  • : to buy tickets for an event and resell them at a much higher price


SCALP Defined for Kids

1

scalp

noun \ ˈskalp \

Definition of scalp for Students

:the part of the skin of the head usually covered with hair

2

scalp

verb

Definition of scalp for Students

scalped; scalping
:to remove the scalp from

Medical Dictionary

scalp

noun \ ˈskalp \

medical Definition of scalp

:the part of the integument of the head usually covered with hair in both sexes

Law Dictionary

scalp

transitive verb

legal Definition of scalp

:to buy and sell so as to make small quick profits
  • scalp stocks
; especially :to resell at greatly increased prices
intransitive verb
:to profit by slight market fluctuations

scalper

noun


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