Thomas48 Walker#19

View translation

What is scaling in and scaling out of positions?

Scaling in involves entering a trade gradually with multiple smaller positions instead of one large order. Scaling out is the reverse—closing parts of a position at different price levels. These techniques allow traders to manage risk more flexibly and adapt to changing market conditions. For example, scaling in helps reduce the risk of mistimed entries, while scaling out secures partial profits while leaving some exposure for potential continuation. Both methods provide balance between risk control and opportunity maximization.