Pyramiding
A method of increasing a position size by using unrealized profits from successful trades to increase margin. Investopedia Says:
An investor who is pyramiding uses excess margin from the increasing price of a security in his or her portfolio to purchase more of the same security. This is generally a slow method of increasing one's position size as the margin increases will permit successively smaller purchases. Related Terms:
DRIP
Leverage
Margin
Paper Profit
Portfolio |