- A method of increasing a position size by using unrealized profits from successful trades to increase margin.
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.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
pyramiding — n. The use of paper profits from existing investments to buy more investments. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. pyramiding n. An illega … Law dictionary
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pyramiding — Building up to a peak. Merging corporations in a complex form with a holding corporation at the top. Controlling prices in a stock or commodity market by a series of operations. Pyramiding occurs when a producer authorizes several persons to sell … Ballentine's law dictionary
pyramiding — noun The practice of an athlete progressively increasing the dosage of an illegal drug to a maximum, and then progressively lowering it, between competitions so as to reduce the chances of being caught … Wiktionary
pyramiding — pyrÂ·aÂ·mid || pÉªrÉ™mÉªd n. geometric figure with a polygonal base and sides which are isosceles triangles; structure in which ancient Egyptians buried their kings v. become more expensive, increase in price; build a pyramid, arrange in the… … English contemporary dictionary
pyramiding — The snowballing effect that derives from a holding company acquiring a number of subsidiary companies … Big dictionary of business and management
pyramiding — /ˈpɪrəmɪdɪŋ/ (say piruhmiding) noun a method by which corporate managers gain control over a large number of other companies for a relatively small outlay by buying a 51 per cent share in one company, which then buys a 51 per cent share in… … Australian English dictionary
pyramiding — / pɪrəmɪdɪŋ/ noun 1. the process of building up a major group by acquiring controlling interests in many different companies, each larger than the original company 2. the illegal prac tice of using new investors’ deposits to pay the interest on… … Dictionary of banking and finance
pyramiding — In the stock market, a device for increasing holdings of a stock by financing new holdings out of the increased margin of those already owned. In corporate finance, the use of small equity and capital to finance controlling interest in more… … Black's law dictionary
pyramiding — noun a fraudulent business practice involving some form of pyramid scheme e.g., the chain of distribution is artificially expanded by an excessive number of distributors selling to other distributors at progressively higher wholesale prices until … Useful english dictionary