Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Risk disclosure
TRADING GLOSSARY

Mean reversion

Mean reversion is the idea that a price or other market measure may move back toward a reference average after deviating from it. Trading approaches based on this idea depend on the chosen reference and can fail when trends persist or market conditions change.

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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure