What is scalping in stock trading? – Swing Trading For Dummies By Omar Bassal Cfa Level


As a member of the stock market, you will pay a premium over the underlying asset when you are buying the stock. For example, if the underlying was 100 shares of gold, the stock would be sold for $100,000; the buyer has paid a market premium of $10,000 to get the stock. That means that someone would have to buy 100 shares of gold to cover their short position! So, you will buy the stock at a premium when it goes to the downside (when the price of the stock falls below the short position) and you will sell it when it has a premium to cover your short position. When the stock price increases on the upside, you sell and buy at that new higher price. If the stock continues to fall, you will sell and buy at the new lower price.

How can I learn to leverage in stock trading?

If you are interested in learning how to leverage in stock trading (and there are many guides to this), I have written a short piece about it HERE!

How to Leverage in Stock Trading?

The following videos will give you an idea:

What else is going on?

I hope this is helpful for you! If you have any questions, please post in the comments below.

From Dota 2 Wiki

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