// 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 Terms
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