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scalp definition - finance
  1. In the futures industry, trading for small gains. It normally involves establishing and selling a position very quickly, often within minutes or hours on the same day.
  2. In the securities industry, the undisclosed selling of a security by a person or entity such as an investment adviser, securities research analyst, or financial newsletter writer who is simultaneously recommending that the security be bought.
  3. The actions of market maker who adds an excessive markup to a trade transaction, in violation of the Rules of Fair Practice of the National Association of Securities Dealers (NASD).

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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