Glossary · from the DESK dictionary
Correction
A price decline of 10% or more, but less than 20%, from a prior high.
In plain words
A 'healthy,' moderate pause within a larger trend — smaller than a bear market, but clearly noticeable.
What it means for traders
A regularly occurring phenomenon that many traders and investors actively watch for.
Common pitfalls
It's never certain in advance whether a correction stays a correction or escalates into a bear market.
Related terms
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.