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.
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Charles Bovaird, Forbes, 14 Sep. 2021
For me the way to play this is dollar cost averaging.
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Clem Chambers, Forbes, 12 Mar. 2021
Continue to dollar cost average, even in a downturn.
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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.
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Ben Carlson, Fortune, 11 Dec. 2017
See MoreThese 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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Last Updated
19 Sep 2021
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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.
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Time Traveler for dollar cost averaging
The first known use of dollar cost averaging was circa 1957
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