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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