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1. A change in a security's price quickly followed by another change in the opposite direction. For example, a security could rise $1 then quickly lose $2, or it could fall 50 cents then rise 75 cents. Whipsaws are significant risks for day traders and speculators who may lose large amounts of money in short-term trading.

2. To buy securities at a market top or to sell at a market bottom. That is, one whipsaws when one buys or sells securities at exactly the worst possible time. One whipsaws out of fear or out of misreading market signals. To whipsaw is also called to chatter.


A quick price movement followed by a sharp price change in the opposite direction. An investor expecting a continuation in the direction of a security's price movement is likely to experience whipsaw in a volatile market. This risk is very important to short-term traders but inconsequential to long-term investors.
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The executor's position was a classic case of whipsawing the government; the Service would have no recourse if the estate's position was upheld, because the statute of limitations had expired on the husband's estate.
Observation: The proposed regulations generally mirror the rules for gains from sales of affiliate stock and prevent potential whipsawing that could occur if, for example, losses from a sale of a block of affiliate stock could not be netted against gains from a sale of another block of the same stock.
Employers sought peak-level bargaining to bring an end to inflationary wage rivalry and whipsawing long after they had asserted managerial control in the first half of the century.