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Investments glossary

Logarithmic Price Scale


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A logarithmic price scale is a type of scale used on a chart that is plotted such that two equivalent price changes are represented by the same vertical distance on the scale. The distance between the numbers on the scale decreases as the price of the asset increases. After all, a $1.00 increase in price becomes less influential as the price moves higher since it corresponds to less of a percentage change.


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