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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
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
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
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'dollar cost averaging.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/dollar%20cost%20averaging. Accessed 5 Nov. 2024.
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