// TRADING TERMINOLOGY

What is Distribution?

A phase in the market cycle where institutional investors are quietly selling their large positions to retail traders.

In-Depth Explanation

Distribution often happens at the top of a bull market. While retail traders are buying due to "FOMO," institutional players are exiting their positions, leading to a period of sideways or volatile price action before a trend reversal.

Practical Example

"The stock market shows signs of distribution as volume increases while price fails to make new highs."

Related Terminology

Accumulation

A phase in the market cycle where institutional investors are quietly buying a large position in an asset.

Retail Trader

An individual trader who trades for their own account, rather than for an organization.

Bull Market

A market condition where prices are rising or expected to rise.

Bear Market

A market condition where prices are falling or expected to fall.

Tradeable Instruments Affected

EUR/USDEuro / US Dollar

GBP/USDBritish Pound / US Dollar

USD/JPYUS Dollar / Japanese Yen

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Master the language of risk

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