To buy additional shares in a long position as it moves down with the objective of reducing the average price per share. The wisdom of an average-down strategy is debatable. While many investors employ it as a means of lowering the breakeven price, some investment advisors caution against throwing additional money into a losing position. Compare to Average Up; dollar cost averaging.
Browse by Subjects
average price per share
See All Related Terms »
rate of exchange
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):