Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA),

Dollar-Cost Averaging (DCA) Definition:

The Dollar Average Cost (DCA) is an investment strategy in which the investor distributes the total amount invested in the regular purchase of the target asset to minimize the impact of volatility on aggregate purchases. Buy is done independently of the asset price and, in fact, on a permanent basis, this strategy eliminates the task of many retailers to adapt the market to buy stock at the best price. Average dollar costs are also known as permanent dollar plans.

  • Dollar cost average refers to the process of dividing stock investment into several small investments of the same value at regular intervals.
  • The average cost of the dollar aims to reduce the overall effect of fluctuations on the value of the target asset, because whenever a regular investment is made, the price will change in any case, not investment fluctuations.
  • The average cost of the dollar is to avoid mistakes when investing in assets.

Literal Meanings of Dollar-Cost Averaging (DCA)


Meanings of Dollar:
  1. Twenty currency units for the United States, Canada, Australia, and some countries in the Pacific, Caribbean, Southeast Asia, Africa, and South America.

Sentences of Dollar
  1. Does this mean that the price of oil has not risen so much in pounds or euros in dollars?


Meanings of Cost:
  1. Payment (amount of money) is required before receiving or performing (an item or work).

Sentences of Cost
  1. The price of each issue of the magazine is 25 2.25

  2. Your job is to plan and calculate the cost of the media program for the campaign.

Synonyms of Cost

estimate the price of, charge, put a figure on, come to, value, hire charge, fare, put a value on, fetch, put a price on, asking price, price, be valued at, amount to, sell for, levy, toll, selling price, be priced at, market price, be, tariff


Meanings of Averaging:
  1. Value or coverage during the average period of the average rate or value.

  2. A number that represents the central or general value in a set of data, specifically the mode, median, or (most often) meaning value, which divides the sum of the values ​​in the set by their amount. Is calculated by

  3. Transfer of financial responsibility for damage or financial loss to the ship or its cargo.

  4. Sort the results by adding some quantities and then divide that number by the sum of the quantities.

Sentences of Averaging
  1. 2.4% average annual inflation

  2. More than 19% of the EU's population is over 60 years old

  3. Special average means partial loss or damage to a ship, cargo or goods.

  4. The average temperature in May is 4 ° C below normal

Synonyms of Averaging

mode, centre, mean, median, medial, middle, midpoint


Meanings of DCA:
  1. (In the UK) Department of Constitutional Affairs.