Also found in: Dictionary, Thesaurus, Idioms.


Buying stocks just before prices fall and selling stocks just before prices rise in a volatile market, often as the result of misleading signals.


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.
Mentioned in ?
References in periodicals archive ?
Expectations for a fiscal policy breakthrough by the panel were on the rise as markets whipsawed through the week following a historic downgrade of U.
Shifting views on interest rates in 2010 whipsawed markets on Wednesday, with the Australian dollar tumbling as investors scaled back their bets on aggressive rate hikes, while U.
Cedars and firs 1,000 years old and 20 feet in diameter were ignominiously felled, whipsawed into planks and split into shakes.
In 2002 the IRS disallowed the exemptions for both taxpayers for 1998 and 1999 to protect the government from being whipsawed.
I found myself whipsawed back and forth in my reactions," he writes.
In today's volatile stock market, employees can get whipsawed if they are required to hold stock acquired through the exercise of these options for a specified period of time.
Domestic textile makers continued to be whipsawed by the effects of Asia's financial crisis in 1998 as prices for fabrics produced in the Far East continued their decline while imports surged.
Journalists and politicians both get whipsawed by the frenzy of the latest developments, with short attention spans and fading institutional memories " she said.
It's almost impossible to time the bottom, and is almost always foolish to try; as you most likely will be whipsawed.
We need not be whipsawed from the routine process of sequential logic to the other extreme of unfocused vision and abstract imagination.