Definition of Whipsaw
A rapid price reversal that triggers stop losses on both sides of the market. Whipsaws commonly occur during news releases or in choppy, directionless markets.
At a glance
Term
Whipsaw
URL slug
whipsaw
Category
General
Short answer
A rapid price reversal that triggers stop losses on both sides of the market.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Whipsaw” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Whipsaw” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Whipsaw” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A rapid price reversal that triggers stop losses on both sides of the market.
Knowing the precise definition of “Whipsaw” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Whipsaw” as loose slang while your broker/platform specification defines it more narrowly.