The process of continuing to purchase contracts
/assets/shares as the price decreases. To scale
in (or scaling
in) means to set a target price and then invest in increments as the instrument 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 instrument does not come back to the target price, however, the investor ends up purchasing a losing instrument.
And vice-versa if in a short trade.
Also referred to as Dollar Cost Averaging, DCA
, Averaging Down, or Adding to a Loser.
Scale In is opposite of Pyramiding
Read more: Scale In Definition | Investopedia http://www.investopedia.com/terms/s/...#ixzz3zrA5rAmq
See also: http://www.investorwords.com/12301/scale_in.html