buy the dip

verb

To purchase a financial asset after its market value drops.

Meanings

verbbuy the dip (third-person singular simple present buys the dip, present participle buying the dip, simple past and past participle bought the dip)

present singular third person buys the dip · participle present buying the dip · participle past bought the dip · past bought the dip · alternative buy the dips

  1. slangbusinessTo purchase a financial asset after its market value drops.

    Many traders are told to “buy the dip and sell the pullback” but not exactly when to execute this. It has been left up to the trader to enter when he or she feels the time is right.

    2009, Ken Wood, Trade the Patterns: The Revolutionary Way of Trading the CCI, Traders Press, →ISBN, page 31
    2 more examples

    During upward-sloping cycles in the Investment Rate, a long bias with proper diversification should result in positive portfolio returns, without drawn-out setbacks, if investors are willing to buy the dips, especially the big ones, at all times.

    2009, Thomas H. Kee, Buy and Hold Is Dead: How to Make Money and Control Risk in Any Market, John Wiley & Sons, →ISBN, page 35

    This week, BlackRock's Larry Fink noted that sovereign wealth funds had bought the dip by snapping up bitcoin while it traded just above $80,000, in a sign that parts of the investment community remained bullish even as prices fell to their lowest level in eight months.

    2025 December 6, George Steer, Jill R Shah, Nikou Asgari, “Crypto’s rocky year”, in FT Weekend (Big Read section), London: The Financial Times Ltd., →ISSN, →OCLC, page 6

Origin

Referring to the "dip" (fall) in a stock's market value, which allows an investor to purchase its shares at a cheaper price and possibly earn better gains if the stock rebounds to its previous high.

Full word history & related roots →
Cite this entry
APA

buy the dip. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/buy%20the%20dip

MLA

“buy the dip.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/buy%20the%20dip. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “buy the dip,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/buy%20the%20dip.

Source: buy the dip on Wiktionary, CC BY-SA 4.0.