Rubber Band Effect(redirected from Rubberband effect)
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved