Alexander Steven A837 Harris#78

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What is scaling in and scaling out in forex trading?

Scaling in means entering trades gradually rather than all at once. For instance, instead of buying $100,000 EUR/USD immediately, a trader might enter $25,000 at 1.1000, $25,000 at 1.0980, and $50,000 at 1.0960. Scaling out is the reverse—closing positions gradually to secure profits while maintaining exposure. Benefits: reduced entry timing risk, smoother P&L, psychological comfort. Risks: scaling in may waste capital if trend runs without pullbacks; scaling out may reduce profits prematurely. Institutions use scaling techniques for large orders to minimize market impact. Retail traders benefit by reducing emotional extremes and adapting to uncertainty. Scaling, when applied with defined rules, makes trading more flexible and adaptive to market noise.