dollar cost averaging

noun

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.

See More

First Known Use of dollar cost averaging

circa 1957, in the meaning defined above

Keep scrolling for more

Learn More About dollar cost averaging

Time Traveler for dollar cost averaging

Time Traveler

The first known use of dollar cost averaging was circa 1957

See more words from the same year

Dictionary Entries Near dollar cost averaging

dollar bird

dollar cost averaging

dollar day

See More Nearby Entries 

Statistics for dollar cost averaging

Last Updated

19 Sep 2021

Cite this Entry

“Dollar cost averaging.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/dollar%20cost%20averaging. Accessed 26 Oct. 2021.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon

WORD OF THE DAY

Test Your Vocabulary

Difficult Spelling Words Quiz

  • alphabet pasta spelling help
  • Which is the correct spelling?
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!