What Is Averaging In Stock Market?
What Is Averaging In Stock Market ? If the prices of the shares we have bought fall, then we can again buy those shares at lower prices which will lower our average buying price and this process is called averaging in the stock market. For example- We have purchased 100 shares of AB Ltd. for Rs.1000 and the value of our investment is Rs.1,00,000. Now, if the share price of AB Ltd. reduces to Rs.900 per share then we will incur a loss of Rs.100 on each share of AB Ltd. If you want to learn all technicals of the stock market, you can go for our stock market technical analysis course.
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