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. Retail Investor

    Individual investors who buy and sell securities for their personal ...
  2. Trend

    The general direction of a market or of the price of an asset. ...
  3. Weak Longs

    Refers to the group of investors that holds a long position and ...
  4. Swing Trading

    A style of trading that attempts to capture gains in a stock ...
  5. Volatility

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

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