Market
What is correction?
A fall of about 10% or more from a recent high.
Explained in more detail
Corrections are common, often several in a decade, and usually pass without any lasting damage. The word is used loosely, and the size of a fall says nothing on its own about whether the businesses underneath have changed.
An example
For instanceThe index dropping 12% over six weeks would be described as a correction.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time correction appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.