Average Down


DEFINITION of 'Average Down'

The process of buying additional shares in a company at lower prices than you originally purchased. This brings the average price you've paid for all your shares down.

BREAKING DOWN 'Average Down'

Sometimes this is a good strategy, other times it's better to sell off a beaten down stock rather than buying more shares.

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  5. Scale In

    The process of purchasing shares as the price decreases. To scale ...
  6. Scale Out

    The process of selling portions of total held shares while the ...
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  1. If I own stock that drops in price is this a sign that I should buy more?

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