What is 'Average Down'?
It is an investment strategy where you purchase more shares of an asset after its price has dropped. This lowers your average cost per share, potentially making it easier to break even or profit if the price recovers.
Frequently Asked Questions (FAQ)
How is the new average calculated?
It is calculated as: ((Old Qty × Old Avg) + (New Qty × New Price)) ÷ Total Qty. This calculator automates this math for you instantly.
Is there any risk?
Yes, if the price continues to drop, your total loss can increase significantly because you have invested more capital. Always manage your risk and position size carefully.
What is Target Price Calculator?
It automatically calculates how much more you need to invest at the current price to reach your desired target average price.
What is Scenario Table?
It allows you to compare expected average prices and drop rates based on different investment amounts at a glance.
What is Fear & Greed Index?
It indicates market sentiment. Extreme fear can be a buying opportunity, while extreme greed suggests caution.
How do I use this calculator?
Enter your current average price, quantity held, and the current market price. The calculator will show you how much you need to buy to lower your average to a desired level.