dol∙lar cost ave∙rag∙ing (noun)

A strategy of buying a fixed amount of an investment (such as a mutual fund) on a regular, pre-determined schedule. The investment is purchased regardless of price, which helps take emotion out of the process. Dollar cost averaging can help smooth out the path of returns of an investment, as more shares, or fund units, are purchased when the investment’s price is falling and less are bought when the price is rising.

A dollar cost averaging plan, for example, may involve purchasing $1,000 worth of mutual fund units on the 15th day of every month for 24 months.

The above term is taken from The Steadyhand Dictionary, which is designed to help you sift through and make sense of the investment industry's dialect. Think of it as the little black book of investing.