Flat On A Failure

AAA

DEFINITION of 'Flat On A Failure'

Closing out a position and taking profits when the security in question moves up to a target level but fails to break through it. This can be seen as a method of extracting what profit a trade has been able to produce so far because the trader believes that further movement past the target level is unlikely.

INVESTOPEDIA EXPLAINS 'Flat On A Failure'

For example, suppose that a trader is in a long position on a given currency pair and the exchange rate moves upward in her favor by a moderate amount, but fails to move past a key resistance level she was expecting to act as a catalyst for further movement. In this case, the trader would probably deem the trade flat on a failure and close the position, taking whatever profit has been earned.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Profit Taking

    The action of selling stock to cash in on a sharp rise. This ...
  4. Cross Currency

    A pair of currencies traded in forex that does not include the ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Mass Index

    A form of technical analysis that looks at the range between ...
Related Articles
  1. The Fundamentals Of Forex Fundamentals
    Forex Education

    The Fundamentals Of Forex Fundamentals

  2. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  3. What is a pip and what does it represent?
    Forex

    What is a pip and what does it represent?

  4. The ADX Shows Strong Uptrends In These ...
    Chart Advisor

    The ADX Shows Strong Uptrends In These ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center