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  1. Home
  2. /Glossary
  3. /Dollar Cost Averaging (DCA)
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Dollar Cost Averaging (DCA)

Investing a fixed amount at regular intervals regardless of price.

Definition

Investing a fixed amount at regular intervals regardless of price. Instead of trying to time the market, you buy consistently. DCA reduces the impact of volatility and removes emotional decision-making from the equation.

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Related Terms

Volatility

How much an asset's price fluctuates over time.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

Automated Trading

Using software to execute trades based on predefined rules and algorithms without human intervention.

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