Skip to main content
MarketSurfer

What is DCA (Dollar Cost Averaging)?

Advanced

DCA (Dollar Cost Averaging)

A method of buying the same amount at set intervals. More units are bought when the price is low and fewer when it is high, which reduces the variation in the average cost. Entry timing does not need to be judged, but a limitation is that losses also build up in an asset that keeps falling.

DCA (Dollar Cost …the same amount split at fixed intervals

Related terms

← All glossary terms

DCA (Dollar Cost Averaging) meaning — Trading glossary | MarketSurfer