What is Scaling In within Forex?
Quick Answer: Scaling in means building a position in stages as price action confirms the trade thesis, letting traders control initial risk while increasing size when conditions improve.
Understanding Scaling In
Scaling in involves adding to a position in stages as the setup confirms. Instead of committing full size upfront, you build exposure as price action validates your thesis, reducing regret if the trade fails immediately.
When to Scale In
Trend traders might start with a probe position at support, add on a break above resistance, and top up on a successful retest. Fundamental traders can stagger entries around central bank events to average into favorable pricing.
Structured Addition
Plan each add-on in advance, including updated stops and targets. Use position calculators to ensure total risk stays within your trading plan.
Risk Management
Scaling in should not increase total risk beyond your maximum per trade. Either raise stops to breakeven on the initial position or reduce size on later entries. Monitor aggregate exposure across correlated pairs.
Avoid Martingale Behavior
Never add just because price moves against you. That converts scaling in into a martingale. Only add when the trade thesis strengthens.
Related Terms
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