What is dollar cost averaging?

Dollar-cost averaging is an investment strategy. When an individual invests a fixed amount of money at regular intervals (e.g., monthly) in a specific asset, regardless of its price fluctuations it is considered dollar cost averaging. This approach allows investors to buy more units of the asset when its price is low and fewer units when its price is high.

The Relative Strength Index (RSI) is a technical indicator used in financial markets to assess the momentum and strength of price movements of an asset. RSI is calculated based on the ratio of the average gains to average losses over a specified period, typically 14 days. It provides a numerical value between 0 and 100, with values above 70 indicating overbought conditions, and values below 30 suggesting oversold conditions, helping traders identify potential trend reversals or price corrections.

What is leverage trading?

Leverage trading is a method in which traders borrow funds from a broker or exchange to magnify their trading position's size, aiming to amplify potential profits. Leverage allows traders to control a larger position with a smaller amount of their own capital, increasing their market exposure. However, it also magnifies the risks, as losses can exceed the initial investment, leading to potential liquidation if the market moves adversely.