All Glossary Terms
Investment Strategies

Dollar-Cost Averaging (DCA)

Definition

Dollar-cost averaging is investing a fixed amount at regular intervals regardless of market conditions. This systematically buys more shares when prices are low and fewer when prices are high.

Formula

Average Cost Per Share = Total Invested / Total Shares Purchased

Example

Investing $500/month: at $50/share you buy 10 shares, at $25/share you buy 20 shares. Over time, your average cost per share is lower than the average price during the period.

How AllInvestView Uses This

AllInvestView tracks your cost basis across multiple purchases. Read our dollar-cost averaging guide for strategies.