Overbought

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    OverboughtWhat does overbought mean in trading?

    In trading, overbought refers to the price of an asset or security that is higher than could be explained by fundamental factors.

    This usually occurs when speculative buying of the asset pushes the price beyond its perceived market value, and the likelihood of a market correction, in which the price will decrease, is high.

    The opposite of overbought is called oversold.

    Learn more about market conditions: