™If averaging down appears in a quote, filing or account screen, read it together with the instrument, timeframe and calculation method.
Trading
Averaging down
Buying more after a price decline, which lowers average cost but increases exposure and risk.
Plain-English context
Why it matters
This term is part of the language used to describe ownership, pricing, transactions and investment outcomes.
Assuming Averaging down has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.