scale-down selling

scale-down selling definition - finance
Selling into a market that is going down. For instance, crude oil may be sold at $35 a barrel, then more is sold at $34, and additional amounts are sold at $33. The trader is riding the trend lower and is only committing more to the trade as the market confirms and reinforces the bearish point of view. Producers, such as crude oil companies, can easily sell on this basis. Commodity funds more often sell on this basis, as they tend to be trend followers. This term is typically used in the futures market.

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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