posted on 06-06-2019
Whipsaw
Updated October 1, 2019
What is Whipsaw?
A trader is said to be "whipsawed" when the price of a security suddenly moves in the opposite direction of a trade that he just placed.
How Does Whipsaw Work?
For instance, if a trader buys shares of Apple at $250/share, and over the course of the day the price drops to $230, the trader has been whipsawed.
Why Does Whipsaw Matter?
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