Price Change


DEFINITION of 'Price Change'

The difference in the cost of an asset or security from one period to another. While it can be computed for any length of time, the most commonly cited price change in the financial media is the "daily price change", which is the change in the price of a stock or security from the previous trading day's close to the current day's close. Price change over a period of time such as year-to-date or past 12 months are also commonly used time periods, and is generally computed as a percentage change.

BREAKING DOWN 'Price Change'

Percentage price change is generally the norm for computing asset performance. For shorter intra day periods, absolute price change may be used by momentum and algorithmic traders as the basis for trading and arbitrage strategies.

Price change forms one of the two elements that comprise the total returns from an investment over a period of time, the other being dividends or distributions obtained from the investment.

  1. Closing Range

    The band of prices that a security trades at in a specified period, ...
  2. Theory Of Price

    An economic theory that contends that the price for any specific ...
  3. Price Rate Of Change - ROC

    A technical indicator that measures the percentage change between ...
  4. Market Price

    The current price at which an asset or service can be bought ...
  5. Closing Price

    The final price at which a security is traded on a given trading ...
  6. Change

    1. For an options or futures contract, the difference between ...
Related Articles
  1. Options & Futures

    Retracement Or Reversal: Know The Difference

    Learn to distinguish between a temporary price change and a long-term trend.
  2. Options & Futures

    Profit On Any Price Change With Long Straddles

    In this strategy, traders cash in when the underlying security rises - and when it falls.
  3. Investing Basics

    5 Common Misconceptions About Dividends

    Here are five common misconceptions about dividends that are important to know.
  4. Term

    What's a Sector?

    The term sector has several applications in economics and finance.
  5. Term

    What's a Return of Capital?

    A return of capital is an investment return that is not considered income.
  6. Investing

    How to Win More by Losing Less in Today’s Markets

    The further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
  7. Fundamental Analysis

    Value Investing Strategies in a Volatile Market

    Volatile markets are a scary time for uneducated investors, but value investors use volatile periods as an opportunity to buy stocks at a discount.
  8. Mutual Funds & ETFs

    Using Short ETFs to Battle a Down Market

    Instead of selling your stocks to get gains, consider a short selling strategy, specifically one that uses short ETFs that help manage the risk.
  9. Mutual Funds & ETFs

    How to Lower Investment Account Fees in Retirement

    Retired investors need all the money they have, which is why they should keep an eye on investment fees, as high fees can lower returns.
  10. Investing Basics

    Calculating Capital Gains Yield

    Capital gains yield refers to a security’s appreciation or depreciation during the time it’s held.
  1. What is the difference between a simple moving and an exponential moving average?

    Simple moving averages (SMAs) and exponential moving averages (EMAs) are technical indicators used to track the price of ... Read Full Answer >>
  2. Are simple moving averages backward or forward looking?

    Simple moving averages (SMAs) are technical analysis tools traders and investors use to smooth out a security's past price ... Read Full Answer >>
  3. How can my stock's price change after hours, and what effect does this have on investors? ...

    Most investors know that the major stock exchanges have standard trading hours - set periods of time each day when trading ... Read Full Answer >>
  4. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  5. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
  6. How does the stock market react to changes in the Federal Funds Rate?

    The stock market reacts to changes in the federal funds rate in various ways depending on where it is in the business cycle. ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Ex Works (EXW)

    An international trade term requiring the seller to make goods ready for pickup at his or her own place of business. All ...
  2. Letter of Intent - LOI

    A document outlining the terms of an agreement before it is finalized. LOIs are usually not legally binding in their entirety. ...
  3. Purchasing Power

    The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing ...
  4. Real Estate Investment Trust - REIT

    A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges ...
  5. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  6. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!