---
title: "Averaging down - Meaning & GFN's Figure - Get Funded Now"
description: "Adding to a losing position to improve the average entry price. It lowers the break-even level and raises the size of the loss if the position keeps…"
url: "https://getfundednow.com/glossary/averaging-down"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/averaging-down"
  pt-BR: "https://getfundednow.com/pt-br/glossary/averaging-down"
  fr: "https://getfundednow.com/fr/glossary/averaging-down"
  it: "https://getfundednow.com/it/glossary/averaging-down"
  de: "https://getfundednow.com/de/glossary/averaging-down"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Strategy and performance

# Averaging down

Adding to a losing position to improve the average entry price. It lowers the break-even level and raises the size of the loss if the position keeps moving against you.

GFN’s figure

On a $100,000 GFN Instant account, doubling a position that is already $1,500 underwater puts the full $3,000 daily allowance at risk on a single further move of the same size.

In detail

## Averaging down, explained

Averaging down converts a defined risk into an open-ended one. The original trade had a planned loss; the averaged position has a larger one, taken at the moment the original analysis was being contradicted.

It is distinct from a planned scaled entry, where the full position size is decided in advance and the entries are staged. The difference is whether the added size was in the plan before the trade went wrong.

[Rules handbook](https://getfundednow.com/rules) · [More strategy and performance](https://getfundednow.com/glossary/category/strategy)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Martingale](https://getfundednow.com/glossary/martingale) - Doubling position size after each loss so that one win recovers the sequence. The required size grows exponentially, so the strategy needs unlimited capital to survive a long enough losing run.
- [Grid trading](https://getfundednow.com/glossary/grid-trading) - Placing orders at fixed intervals above and below a price so that positions accumulate as the market moves. It profits from oscillation and accumulates exposure in a sustained trend.
- [Position size](https://getfundednow.com/glossary/position-size) - How many lots a trade is placed in. It is calculated from the dollar amount being risked and the stop distance, not chosen first - which is the reverse of how most traders approach it.
- [Stop loss](https://getfundednow.com/glossary/stop-loss) - A resting order that closes a losing position at a predetermined level. It is the mechanism that turns a risk-per-trade figure into an actual limit rather than an intention.
- [Risk of ruin](https://getfundednow.com/glossary/risk-of-ruin) - The probability that a sequence of trades takes an account to its breach level before it reaches its target, given a win rate, a reward-to-risk ratio and a risk per trade. It is driven mostly by position size.

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Source: https://getfundednow.com/glossary/averaging-down
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt