1 C1 formal
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."
average down
C1 formal intransitive
An investing strategy where you buy more of an asset as its price falls, reducing your overall average purchase cost.
In plain English
When the price of something you own goes down, you buy more of it so your average price paid becomes lower.
What does "average down" mean?
2 meanings, ordered from most common to least. Color-coded by CEFR level.
2 C1 neutral
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."
Literal vs figurative
Words literally mean
To bring an average figure downward.
Actually means
When the price of something you own goes down, you buy more of it so your average price paid becomes lower.
Usage tip
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.
Words that pair with "average down"
Natural word combinations native speakers use most often.
stock shares position portfolio price cost basis
How to conjugate "average down"
The five tense forms you'll use most often.
Base
average down
I/you/we/they
3rd person
averages down
he/she/it
Past simple
averaged down
yesterday
Past participle
averaged down
have + pp
-ing form
averaging down
continuous
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