Scalability A characteristic of a system, model or function that describes its capability to cope and perform under an increased or expanding workload. A system that scales well will be able to maintain or even increase its level of performance or efficiency when tested by larger operational demands. Investopedia Says: In the financial markets, scalability is the ability that exchanges, banks and financial institutions have to handle increased demands, such as higher trading volumes. In the corporate sense, a scalable company is one that can maintain or improve profit margins while sales volume increases. Related Terms: Business Model Diseconomies of Scale Economies Of Scale Exchange Financial Modeling Profit Margin |