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Forex question What is scale?
avatar admintedy
Question by: xaviola - 07 Mar 2013, 09:31:59
What is scale?
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Answers (1)
avatar user 3836
Answer by: Henry - 01 Dec 2014, 04:13:02

The process of purchasing shares as the price decreases. To scale in (or scaling in) means to set a target price and then invest in increments as the stock falls below that price. This buying continues until the price stops falling or the intended trade size is reached. Scaling in will, ideally, lower the average purchase price. If the stock does not come back to the target price, however, the investor ends up purchasing a losing stock.

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