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Rubber Band Effect |
Also found in: Wikipedia | 0.01 sec. |
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Rubber Band Effect A situation in which a security or market drops precipitously and rises just as much just as fast. On a graph, the rubber band effect looks like a capital "V" because of the price declines and increases. The rubber band effect usually occurs due to the execution of limit orders by computer programs. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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