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Dollar Cost Average

Dollar Cost Averaging, or DCA for short, is an investment strategy.

It’s also called a constant dollar plan. It’s different from a forex trading strategy because it’s about how a trader manages money for long term investment purposes.

Money management is often a neglected part of an FX trader’s arsenal. And a good investment strategy can be a helpful complement to a good trading strategy in order to improve profitability.

So is DCA for you?

What Is Dollar-Cost Averaging?

Simply put, it’s when an investor makes regular investments in a target asset at specific, pre-defined intervals.

The objective is to reduce the impact of volatility in the overall purchase. The practical upshot of this is that by buying the asset at a specific time instead of price, it removes a lot of the work related to trying to time the market to get the best price.

In other words, the investor splits the amount of money they have to invest in certain amounts and then buys into the ma...


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