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Glossary

Dollar-Cost Averaging

Dollar-cost averaging (DCA) is the practice of investing a set amount of money at regular intervals — say weekly or monthly — rather than all at once. This spreads purchases across many prices and removes the pressure to time the market.

DCA does not guarantee a profit and does not protect against loss in a falling market, but it can reduce the impact of volatility. You can test the approach with our DCA Calculator.

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