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

Example Sentences

Recent Examples on the Web Systematic contributions to a retirement plan act like dollar cost averaging and doing it with Roths is usually more effective than with traditional contributions. James Lange, Forbes, 24 Jan. 2023 Because most people do not have large amounts of cash to put into the market at one time, dollar cost averaging tends to be the default option. Kevin L. Matthews Ii, Fortune, 28 Sep. 2022 But, the worst bro of all, is a crypto newbie preaching about DCAing (dollar cost averaging). Doreen Wang, Fortune, 6 Sep. 2022 Despite that signaling, Fidelity says investors want access to digital assets like Bitcoin, and doing so through 401(k) contributions will enable them to benefit from dollar cost averaging and tax deferment. Alicia Adamczyk, Fortune, 26 Apr. 2022 Methodically investing a set amount of cash is known as dollar cost averaging (DCA). Brett Owens, Forbes, 29 Dec. 2021 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 See More

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.

Word History

First Known Use

circa 1957, in the meaning defined above

Time Traveler
The first known use of dollar cost averaging was circa 1957

Dictionary Entries Near dollar cost averaging

Cite this Entry

“Dollar cost averaging.” Dictionary, Merriam-Webster, Accessed 7 Feb. 2023.

Last Updated: - Updated example sentences
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