Glossary · from the DESK dictionary
Dollar-Cost Averaging (DCA)
A strategy of regularly investing a fixed amount of money, regardless of the current price level.
In plain words
Instead of trying to time the perfect entry, the same amount is simply invested every month — at both high and low prices.
Example
An investor puts in €500 every month, regardless of whether the market is currently high or low.
What it means for traders
A very popular, simple strategy for long-term retail investors, especially in savings plans.
Common pitfalls
Can underperform a lump-sum investment in steadily rising markets, but offers lower timing risk in exchange.
Related terms
Automatic Investment Plan (AIP) · Buy and Hold · Formula Investing · Value Averaging
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.