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Whipsawing: meaning, definitions and examples

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whipsawing

 

[ ˈwɪp.sɔː.ɪŋ ]

Verb
Context #1 | Verb

financial markets

Whipsawing refers to a trading scenario where an asset's price moves dramatically in one direction and then sharply reverses, often causing traders to incur losses. It can occur in volatile markets, leading to frustration for investors who try to capitalize on price movements. The term is commonly used in contexts where rapid changes create uncertainty and risk.

Synonyms

fluctuate, oscillate, vacillate.

Examples of usage

  • The stock market was whipsawing yesterday.
  • Many investors were whipsawed by the price fluctuations.
  • Traders experienced whipsawing during the economic announcements.

Translations

Translations of the word "whipsawing" in other languages:

🇵🇹 corte de serra

🇮🇳 जालसाज़ी

🇩🇪 Schnellwechsel

🇮🇩 gerakan tajam

🇺🇦 коливання

🇵🇱 wahanie

🇯🇵 振り回す

🇫🇷 oscillation

🇪🇸 cambio brusco

🇹🇷 ani değişim

🇰🇷 급격한 변화

🇸🇦 تغير مفاجئ

🇨🇿 vibrování

🇸🇰 kolísanie

🇨🇳 剧烈波动

🇸🇮 zmanjševanje

🇮🇸 skyndileg breyting

🇰🇿 жедел өзгеріс

🇬🇪 სწრაფი ცვლილება

🇦🇿 kəskin dəyişiklik

🇲🇽 cambio brusco

Etymology

The term 'whipsaw' originates from the 19th century, referring to a type of saw used for cutting timber. The saw moves back and forth, resembling the erratic movements in financial markets. The metaphorical use in finance emerged as traders noticed similar back-and-forth volatility in stock prices, creating 'whipsaw' patterns that led to significant losses. By the late 20th century, the term became widely accepted in trading vocabulary, emphasizing the challenges faced by investors in unpredictable markets. It highlights the duality of risks posed by rapid price changes, akin to getting caught in the blades of a whipsaw.

Word Frequency Rank

At position #41,465, this word is among the less frequently used terms in English. While interesting to know, it's not crucial for most English learners unless needed for specific purposes.