Scale Out
Order Types
What it means
Closing a position in pieces instead of all at once, so you bank some profit while leaving room for more if price keeps moving.
Example
With 300 shares in profit, you sell 100 at $110, 100 at $115, and hold 100 with a trailing stop. You lock in gains but keep exposure to a larger move.
Mistake beginners make
Beginners sell everything the moment they see a small profit, then watch the rest of the move they correctly predicted happen without them. Scaling out leaves skin in the game.
Related terms
- Scale In — Building a position in pieces instead of all at once, so your average entry improves if pr…
- Take-Profit — A pending order to close your position at a profit once price reaches a set level. It lock…