CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Depreciation definition

Depreciation is the term given to the decline in an asset’s value, either due to market conditions or other factors like wear and tear. It is the opposite of appreciation.

When currencies and other financial assets devalue, it is often due to market conditions. The Australian dollar, for instance, may depreciate significantly because of a perceived weakness in the Australian economy. This form of depreciation can be hard to predict with absolute certainty.

Other assets, however, are known to depreciate over time as their usefulness or reliability declines. Machinery bought by a company could be a depreciating asset.

Visit our shares section

Our shares data section has more details on companies’ accounts.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Contact us

Questions about opening an account: +44 (20) 7633 5430, Malaysia Toll Free: 1800 889 539 or email: sales.en@ig.com

Existing client questions:
+44 (20) 7633 5431, Malaysia Toll Free: 1800 880 754 or email: helpdesk.en@ig.com

We’re here 24 hours a day, except from 6am to 4pm on Saturday (UTC+8).