The technique of investing set sums at regular periods (for example, $20 each week) is known as dollar cost averaging. Investors that want to lessen the impact of volatility on their investments and, as a result, lower their risk exposure, employ this method. Because of the potential for lowering the average cost of the total quantity of assets purchased, the term "dollar cost averaging" was developed. As a result, the investor may purchase fewer units of an asset while it is still relatively expensive and more units when the price declines. To put it another way, the investor would take a position gradually rather than all at once.