Source: https://mochatrade.com/learn/glossary/dollar-cost-averaging

# Dollar-cost averaging
URL: https://mochatrade.com/learn/glossary/dollar-cost-averaging
Last modified: 2026-10-17

Dollar-cost averaging is investing a fixed amount at fixed intervals whatever the price, so you buy more units when cheap and fewer when dear. It is sizing by calendar, which works for [holding without leverage](https://mochatrade.com/learn/start-here/us-markets-for-indian-traders) and stops working [once a liquidation price exists](https://mochatrade.com/learn). [The Buffett way](https://mochatrade.com/blog/the-warren-buffett-way-buy-a-great) is its long case.

## Related terms

- Liquidation price: https://mochatrade.com/learn/glossary/liquidation-price
- Liquidity: https://mochatrade.com/learn/glossary/liquidity
- Day trading and the PDT rule: https://mochatrade.com/learn/glossary/day-trading-and-the-pdt-rule
- Trailing stop order: https://mochatrade.com/learn/glossary/trailing-stop-order
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- Growth vs value stocks: https://mochatrade.com/learn/glossary/growth-vs-value-stocks

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.