1. A fluctuation in the value of an asset, liability or account. This term is most commonly used when referring to a situation in which the price of an asset experiences a significant change over a short period.

2. A short-term trading strategy in which a trader attempts to capture gains by holding a security for only a few days. Also known as "swing trading".


1. The volatility that exists in the financial markets can be seen easily when the price of a certain security undergoes rapid changes in value. These sharp shifts are often referred to as a swing. For example, it is not uncommon to see a major index swing from negative territory to positive territory just prior to the market close.

2. Swing trading is often used by individual investors since their small positions won't have a dramatic impact on the price of the security. On the other hand, financial institutions do not have the luxury of entering or exiting a position over a matter of days since the size of their orders can greatly influence the price of the asset.

  1. Weak Longs

    Refers to the group of investors that holds a long position and ...
  2. Trend

    The general direction of a market or of the price of an asset. ...
  3. Swing Trading

    A style of trading that attempts to capture gains in a stock ...
  4. Retail Investor

    Individual investors who buy and sell securities for their personal ...
  5. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  6. Volatility

    1. A statistical measure of the dispersion of returns for a given ...
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