Oversold

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    OversoldWhat does oversold mean in trading?

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

    This usually occurs when speculative short selling of the asset pushes the price below its perceived market value, and the likelihood of a market correction, in which the price will increase, is high.

    The opposite of oversold is overbought.

    Learn more about market conditions: