Dollar Cost Averaging (DCA)

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Dollar-cost averaging is an investment strategy where an investor purchases an asset over several trades which are spaced across time. The purchases are generally evenly spaced and deploy a constant amount of dollars.

Dollar cost steadily grows a portfolio and mitigates volatility.

The primary purchase of dollar-cost averaging is to lower the impact of volatility on the average purchase price of the asset. Investors who use dollar-cost averaging don’t have to worry about timing the market correctly as they will be making many different purchases with different prices.

Learn more about Dollar Cost Averaging.