Definition
A decline of 10% or more in the price of a security from its recent high.
Understanding Correction
Correction is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.
Key Points
- Basic Definition: A decline of 10% or more in the price of a security from its recent high.
- Category: This term is commonly used in Market Terms
- Relevance: Essential knowledge for traders operating in Indian stock markets
Practical Example
When trading on NSE or BSE, you'll encounter correction regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.
Related Concepts
To fully understand correction, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.