Average Down definition

A strategy in which a trader holds an instrument purchased at a high price and buys more when the price of that security falls below. This reduces the average price paid and thus theoretically allows to reduce the loss from the fall in the price of the securities initially purchased.


Related words

ABC Consumer Comfort Index ・ Abandoned Baby ・ Account Statement Report ・ Appreciation ・ Arbitrage ・ ADP Non Farm Employment Change ・ Ask price ・ Ascending Trend Line ・ Average Effective Duration・ AAA+ Bank Definiton・ ABC Elliot waves・ Above the market - limit order・ Absolute Breadth Index・ Average directional index ・ Average directional index・ Aggregation・ Average Down・ Average Directional Movement・ Alpha coefficient・ Anaume・ Andrews Method・ Accumulation and Distribution