Page 146 - Ultimate Guide to Currency Trading

down. If the FX pair is cheaper, you will buy more units for the fixed amount of margin. As the FX pair
gets more expensive, you will naturally buy fewer units for the fixed amount of margin, as each unit
will cost more. In this way, you are getting more at a cheaper cost basis and less at a higher cost basis.
This is a method of building a position that is recommended by mutual fund managers to buy into
shares over time. The same principle holds true; in this case, the "over time" part will be anywhere
from one hour to three hours, instead of months and years as in mutual fund purchases.