pyramiding

pyramiding definition - finance
Using paper profits from one investment as collateral to buy further positions while using a margin loan from a broker. This is a risky strategy because of the potential for prices to fall. Pyramiding also may occur if unrealized profits on existing futures positions are used as a margin to increase the size of the positions in successively larger increments.

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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