An order that involves a certain number of securities (e.g., shares) for execution in stages in an attempt to get an averaged price. The order consists of a series of limit orders at incrementally increasing or decreasing prices.

For example, a scale order (a scale sell order) may be placed for the sale of 1,000 shares, where it is divided into lots of 100 shares provided that execution takes place at an interval of half point as the market advances. For a scale buy order, a trader may place an order for the purchase of 1,000 shares, divided into lots of 100 shares, and subject to execution at an interval of quarter point as the market declines.

Scale orders allow investors to enter into a position in a gradual manner, by means of consecutive smaller trades at predetermined price levels. With a scale order, an investor can define the size of each trade and the price levels at which each trade will take place.