It helps but it seems like a lame term. At least i know what it means now. Next time I invest $1M I will use the term to sound smart.Think of it like waves on an ocean only for money. For example, you have a million bucks you want to invest over the course of a week, targeting the same securities. Instead of buying it all at once, you allocate $250,000 as your first 'tranche' to buy these securities. You're attempting to buy the securities without disrupting the market and forcing prices to move quickly or chase higher prices. The 2nd tranche of $250,000 would come later, then a third and then your final 'tranche' to complete. It's coming in waves rather than a tsunami.
Not sure if that helps at all.




