What is Dollar-Cost Averaging?
Dollar-cost averaging is the practice of investing a fixed amount of money on a regular schedule, regardless of the current price. Because the amount stays the same, you automatically buy more shares when prices are low and fewer when prices are high. It is a way to invest steadily over time and to avoid trying to guess the perfect moment, though it does not remove the risk of loss.
Why Dollar-Cost Averaging matters
It is a simple, mechanical habit that reduces timing pressure and discretionary decisions.
Related terms
Lessons that use this term
Continue