We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies. You can view our cookie policy and edit your settings here, or by following the link at the bottom of any page on our site.
The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.
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.
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. British pound sterling, for instance, may depreciate significantly because of a perceived weakness in the UK 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.
Learn more about share dealing
Visit our share dealing page for more information about share dealing with IG.