pyramiding
pyramiding - Investment & Finance Definition
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.
pyramiding - Legal Definition
n
An illegal scheme in which
paper profits are used to finance the purchase of additional investments, or
the offering of the opportunity to a participant to be paid for the chance to
introduce new persons to the scheme who will each pay for the opportunity to
introduce new persons, and so on.
