dollar cost averaging

noun

: 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

If the individual does not continue to contribute, the value of time invested in the market is lost, dollar cost averaging loses its benefit, and any employer match offered is left on the table to name a few negative affects this has. —David Kudla, Forbes.com, 30 May 2025

Contributing to dollar cost averaging as opposed to trying to time the market helps mitigate risk. —Earl Carr, Forbes, 25 Mar. 2025

However, crypto has a risk surface so complex that dollar cost averaging remains a solid way to go unless you are confirmed in the heroic but precarious style of the bold pilot who wants to go full bore. —Clem Chambers, Forbes, 13 Nov. 2023

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

Word History

First Known Use

circa 1957, in the meaning defined above