Break

Filed Under » ,
Dictionary Says

Definition of 'Break'

A term used in futures markets to describe a rapid and sharp price decline. Breaks generally occur due to unforeseen external factors that affect the spot price of commodities. If a break is large enough, exchange safety measures will be implemented to reduce trading for the day.

A break also refers to a discrepancy in the accounting books of a brokerage firm.

Investopedia Says

Investopedia explains 'Break'

A sudden and unexpected change or move in the price or market value of a security. External factors could include unexpected weather or natural disasters. This type of break is not necessarily something negative as it could occur either upward or downward. A break, or market break, can also occur throughout the entire stock market.

In business, this also refers to a pricing structure that gives different discounts at various volume levels.

Related Definitions

  • At The Market

    An order to buy or sell a futures contract at the best available price upon entrance into the exchange for execution.
    Read More »
  • Bear

    An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a ...
    Read More »
  • Bulge

    A fast increase in a security's or commodity's trading price. Bulge is an informal word with a meaning similar to the term bubble. A bulge occurs when an investment instrument's price ...
    Read More »
    • Bull

      An investor who thinks the market, a specific security or an industry will rise. Investors who takes a bull approach will purchase securities under the assumption that they can be sold ...
      Read More »
    • Buoyant

      The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength.
      Read More »
    • Congestion

      1. A market situation whereby the demand of contract holders wishing to exit their existing positions exceeds the supply of willing participants wishing to enter into the offsetting ...
      Read More »
    • Rally

      A period of sustained increases in the prices of stocks, bonds or indexes. This type of price movement can happen during either a bull or a bear market, when it is known as either a bull ...
      Read More »
    • McGinley Dynamic Indicator

      A little known technical indicator developed by John McGinley in 1990. The indicator attempts to solve a problem inherent in moving averages which use fixed time lengths (ie. a 10 or 21 ...
      Read More »

Articles Of Interest

Partner Links