Flip
Definition of 'Flip'A point when traders shift from having more long positions to having more short positions, or vice versa. A flip can be described as a situation when a trader decides that their outlook or strategy is no longer a winning one, and begins to take steps to reverse their positions. This may involve selling long equity positions in favor of short positions, or through the use of derivative instruments. |
|
Investopedia explains 'Flip'This can be a very effective tool for determining the trend of a certain currency. A shift from long to short positions indicates that the market's bullish outlook on a specific currency could be coming to an end. Another such example could be the market for crude oil, which has been known to be a very volatile trade, with traders often "flipping" positions numerous times over the course of a contract. |
Related Definitions
Articles Of Interest
-
Forex: Identifying Trending And Range-Bound Currencies
Gain a trading edge by learning how macroeconomic forces play out differently for various pairs in the forex market. -
A Primer On The Forex Market
Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers. -
Forecast The FX Market With The COT Report
Three empirical findings on futures data can help currency traders determine buy and sell points. -
How Interest Rates Affect The Housing Market
Understand how rate changes can affect home prices, and learn how you can keep up. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Exploring Non-Dollar Currencies For Forex Trading
Learn how investments in foreign currencies can diversify your portfolio. -
Candlestick Charting: What Is It?
Discover the components and basic patterns of this ancient technical analysis technique. -
Financial Solutions For Young Women
Break through the stereotypes and find out how to manage your life to meet your needs.
Free Annual Reports