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Cryptopedia

Cryptopedia

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It refers to the behavior of buying-in more of the asset that is already in position when the price of that asset drops so that the cost can be diminished. E.g. Given that an investor bought 100 of some crypto asset at the price of 10 USDT. However, the price of this crypto declined to 5 USDT the next day. The investor bought another 100 of the crypto as he expected the bounce-back of its price. Thus, the average buying price can be seen as the following formula: [(10*100)+ (5*100)]/(100+100)=7.5 USDT.
Authored by Gate TR. Please refer to the source.

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