dollar-cost averaging

dollar-cost averaging

/ˈdɒlər kɒst ˈævərɪdʒɪŋ/

🎯 Trading Strategies & Orders

investing a fixed dollar amount at regular intervals regardless of price, reducing the impact of volatility

By dollar-cost averaging into the index fund monthly, she avoided the trap of trying to time the market.

Origin: Dollar + cost + average from Latin averagium mean value