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 Continue to dollar cost average, even in a downturn. Charisse Jones, USA TODAY, "Recession watch: 6 financial moves to make when the economy slows down," 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, "How to Win Any Argument About the Stock Market," 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.

First Known Use of dollar cost averaging

circa 1957, in the meaning defined above

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The first known use of dollar cost averaging was circa 1957

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Cite this Entry

“Dollar cost averaging.” Dictionary, Merriam-Webster, Accessed 28 Oct. 2020.

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