Glossary term: Fade


Could you please add the term "FADE" to the glossary. I have heard this term used often and in different ways.

Thanks.
iDoc - will do. In the meantime, it has a very simple explanation: It means to go against the current direction of the market. If the market is going up then to "fade" the market is to sell the market. If you fade the market you are doing "market timing" which means that you can estimate (or your strategy has a high probability of estimating) the turning point in the market. You could also call this a counter trend trade.

Traders are "fading the market" - they are buying a dropping market or selling a rising market.