Dollar-cost averaging — meaning explained

Dollar-cost averaging: Investing the same amount on a schedule.

What it means

Put in £/$50 every month no matter what the market is doing. You buy more shares when prices are low and fewer when they're high, so you never have to guess the perfect moment.

Category

Strategy — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.