DEFINITION of 'Scale Order'

A type of order that comprises several limit orders at incrementally increasing or decreasing prices. If it is a buy scale order, the limit orders will decrease in price, triggering buys at lower prices as the price starts to fall. With a sell order, the limit orders will increase in price, allowing the trader to take advantage of increasing prices, thereby locking in higher returns.


For example, if a trader believes that a stock will fall over the course of the day, a scale order will help him or her take advantage of the lower price if the prediction is correct. If the trader wants to purchase 1,000 shares of the company, he or she may scale the limit orders so that 100 shares are bought for every $0.50 fall in price.

  1. Bracketed Buy Order

    Bracketed buy order refers to a buy order that has a sell limit ...
  2. Away From The Market

    An expression that is used when the bid on a limit order is lower ...
  3. Market-With-Protection Order

    A type of market order that is canceled and re-submitted as a ...
  4. At Limit

    An order that sets a maximum limit on the buy price and/or a ...
  5. Immediate Or Cancel Order - IOC

    An order to buy or sell a security that if not immediately filled, ...
  6. Day Order

    An order to buy or sell a security that automatically expires ...
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