Market basics

What is Market correction?

Also called: Correction

Hinglish mein padhein: Market correction kya hota hai?

A correction is a fall of about 10% to 20% from a recent high — sharper than a normal dip but smaller than a bear market.

Corrections are common and healthy in long bull markets because they cool excess optimism.

Investors who planned their asset allocation in advance find it easier to stay calm during corrections.

Related terms