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Recapitalize




To use your closed out trading profits to increase the amount of contracts, options or stocks that you normally trade.


Additional Comments:

To recapitalize your profits after you have doubled your initial investment would be to double the amount of contracts or shares of stock that you started trading with.

It is essentially the re-investment of profits.

Related Terms:

Margin
A deposit made by a trader with a clearinghouse to ensure that he/she will fulfill any ...

Hedging
A strategy designed to reduce investment risk using call options, put options, short-selling, or futures contracts. ...

Directional Trade
A trade that requires the underlying asset to move in one direction in order to produce ...





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