dollar cost averaging


Definition of dollar cost averaging

: investment in a security at regular intervals of a uniform sum regardless of the price level in order to obtain an overall reduction in cost per unit

called also dollar averaging

Examples of dollar cost averaging in a Sentence

Recent Examples on the Web Long-Term Strategies One technique cryptocurrency investors can use to build wealth is dollar cost averaging, which involves making purchases at regular intervals. Charles Bovaird, Forbes, 14 Sep. 2021 For me the way to play this is dollar cost averaging. Clem Chambers, Forbes, 12 Mar. 2021 Continue to dollar cost average, even in a downturn. Charisse Jones, USA TODAY, 15 Aug. 2019 One way to avoid the temptation to predict market highs and lows is to diversify across time in the markets by dollar cost averaging your purchases and sales periodically into and out of your investments. Ben Carlson, Fortune, 11 Dec. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'dollar cost averaging.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of dollar cost averaging

circa 1957, in the meaning defined above

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Time Traveler for dollar cost averaging

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The first known use of dollar cost averaging was circa 1957

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Dictionary Entries Near dollar cost averaging

dollar bird

dollar cost averaging

dollar day

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Statistics for dollar cost averaging

Last Updated

19 Sep 2021

Cite this Entry

“Dollar cost averaging.” Dictionary, Merriam-Webster, Accessed 26 Oct. 2021.

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