dollar-cost averaging
/ˈdɒlər kɒst ˈævərɪdʒɪŋ/
investing a fixed dollar amount at regular intervals regardless of price, reducing the impact of volatility
dollar-cost averaging in a sentence
“By dollar-cost averaging into the index fund monthly, she avoided the trap of trying to time the market.”
Origin of dollar-cost averaging
Dollar + cost + average from Latin averagium mean value
Related Words
rebalancing
adjusting a portfolio back to its target asset allocation by buying and selling assets
alpha
excess return on an investment relative to the return of a benchmark index
beta
a measure of how much a security moves relative to the broader market; a beta above 1 means more volatile
P/E ratio
price-to-earnings ratio — the price of a stock divided by its annual earnings per share
short squeeze
a rapid price increase that forces short sellers to buy back shares at a loss, accelerating the rise
market order
an instruction to buy or sell a security immediately at the best available current price