Dollar-Cost Averaging
InvestingGlossary term
Definition
An investment strategy where you invest a fixed amount regularly, regardless of market conditions. Reduces the impact of market volatility by buying more shares when prices are low.
Related terms
- PortfolioA collection of financial investments like stocks, bonds, mutual funds, ETFs, and other assets. Diversifying your portfolio helps manage risk.
- Market VolatilityThe degree of price fluctuation in financial markets. High volatility means large price swings, indicating uncertainty or risk. Measured by the VIX (Volatility Index).
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