average down
When the price of something you own goes down, you buy more of it so your average price paid becomes lower.
Meanings
In investing, to buy additional shares of a stock at a lower price than you previously paid, reducing your average cost per share.
"She averaged down on her tech shares after they dropped 20%, hoping for a long-term recovery."
Generally, to make repeated purchases at declining prices to reduce the overall average price paid.
"Collectors often average down on items they believe are temporarily undervalued."
Specialist financial and investing terminology. Common in stock market discussions, trading forums, and investment journalism. Also called 'dollar-cost averaging downward'. Can be risky if the asset continues to fall. Primarily used in North American financial contexts.
Commonly used with
Forms
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