Pyramiding Law and Legal Definition

The common understanding of the term pyramiding is that it is a process in which things are stacked or piled, one on top of the other. [New York Dock Ry. v. United States, 609 F.2d 83, 98 (2d Cir. 1979)].

Pyramiding refers to trading on margin, in which the trader uses his profits from one transaction to buy or sell additional amounts.

The concept of pyramiding also refers to a situation where the same type or kind of benefit is made available to an employee under two or more employee protective arrangements, and those benefits differ only as to amount and duration. [New York Dock Ry. v. United States, 609 F.2d 83, 99 (2d Cir. 1979)].