Correction

A reverse movement of at least 10% in an asset's price.

Detailed Definition

A market correction is a rapid and short-term drop of at least 10% in the price of an asset or index. Corrections happen to 'correct' an asset that has become temporarily overvalued.

Related in General Trading

Bull Market

A market condition where prices are rising.

Float

The regular shares a company has issued to the public.

Fundamental Analysis

Evaluating an asset's intrinsic value based on economic factors.