Dollar-Cost Averaging (DCA)
An investment strategy of investing equal dollar amounts at regular calendar intervals regardless of asset price.
Detailed Definition
DCA removes emotional market-timing stress by allocating a steady capital amount (e.g. buying $100 of Gold or Bitcoin every Monday). When prices drop, the investor purchases more units; when prices rise, fewer units are bought, smoothing the average acquisition cost over market cycles.
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Related in General Trading
All-Time Low (ATL)
The lowest recorded price level an asset has ever dropped to in its trading history.
Market Capitalization (Market Cap)
The total dollar market value of a company's outstanding shares or a cryptocurrency's circulating supply.
Leverage
Using borrowed funds from a broker or exchange to increase buying power and amplify potential returns or losses.