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 IndexAbandoned BabyAccount Statement ReportAppreciationArbitrageADP Non Farm Employment ChangeAsk priceAscending Trend LineAverage Effective DurationAAA+ Bank DefinitonABC Elliot wavesAbove the market - limit orderAbsolute Breadth IndexAverage directional indexAverage directional indexAggregationAverage DownAverage Directional MovementAlpha coefficientAnaumeAndrews MethodAccumulation and Distribution