Meaning & use
Pyramiding
Last updated
The practice of using unrealized profits from an investment or trading position as collateral to increase the size of that position.
See it in a sentence
The trader's pyramiding strategy amplified both his gains and his risk.
Regulators warned that pyramiding in a volatile market can wipe out an account quickly.
A note on using this word
The term evokes the image of building successive, ever-larger layers on top of an existing base, much like a pyramid.
Words with a similar meaning
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Another way to use it
2. verb
Arranging or building up in a pyramid-like structure.
The display involved pyramiding cans of soup in the store window.
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