Spike

Spike (from the English spike - spike, tip) is a trading strategy in financial markets that uses short-term fluctuations in the price of an asset to make a profit.

The essence of the strategy is to buy an asset at a lower price and then sell it when the price rises. Traders who use spikes typically hold positions from several minutes to several hours, less often days.

Spike trading requires quick reaction to price changes and a good understanding of short-term market dynamics. This strategy is risky as small price fluctuations can bring both profit and loss.

The main advantages of spikes:

1. Opportunity to make a profit on small price fluctuations
2. Fast return on investment for successful transactions
3. Requires less capital than position trading

Flaws:

1. High risks due to volatility in the short term
2. The need to constantly monitor the market
3. High competition among traders

In general, spike trading is suitable for experienced traders who are willing to take risks for quick profits. This strategy requires high discipline, attentiveness and quick decision-making.