The process of selling (buying) portions of total held contracts
while the price increases (decreases) in a long (short) trade. To scale
out (or scaling
out) means to get out of a position (e.g., to sell - or buy if in a short trade) in increments as the price climbs (decreases for a short trade). This strategy allows the investor to take profits while the price is increasing (decreasing for a short trade), rather than trying to time the peak price (trough price for a short). If the actual value continues to increase (decrease for a short trade), however, the investor could be selling (buying for a short trade) a winner too early.
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