Buy The Dip

What does buy the dip mean in finances?

Buy an asset at a low price

"Buy the dip" is a financial strategy that involves purchasing an asset, such as a publicly-traded stock, when it dips in value. The reasoning behind this tactic is the hope that the asset's value will rebound and increase, making the investor money.

You can apply the "buy the dip" strategy to any item whose value fluctuates, such as real estate or commodities. However, it is especially pertinent to the stock market and cryptocurrencies.

Financial traders use "buy the dip" as a mantra for value investing — getting good deals on stocks after their price has dropped. Buying the dip can be a very lucrative strategy if you can time the market well and predict the direction of a stock or cryptocurrency. But if you're wrong, you may lose a lot of money.

Example

"I have a great feeling about them. Be sure to buy the dip. Trust me."
The downside of buying the dip

The downside of buying the dip

Related Slang

Usage

Last Updated: October 9, 2021

Buy the dip definition

This page explains what the slang term "Buy the dip" means. The definition, example, and related terms listed above have been written and compiled by the Slangit team.

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