When a trader redeems an asset, the price falls, and if the trader buys more, this is considered a down-average.

This is called an averaging down because the average price of an asset or a trading instrument has been lowered. As a result, the point at which trading becomes profitable has also been reduced.

 

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In trade, the concept of base currency has two main meanings: the first currency listed in the forex pair or the accounting currency used by banks and other companies.

 

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