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What is the oversold effect? Mainly refers to the stock market.
Think of it this way, if you buy a stock now. It used to rise very well. Suddenly one day, the crashed market began to fall, and the transaction volume was very large. Everyone was worried, and someone in the sales department shouted, "It's going to crash! Everybody run! " Originally, you were quite confident in your own stock, and you couldn't help but panic at this time. You want to sell, too. What should not be sold began to be sold. It's oversold at this time. Panic selling means the same thing.

Of course, foreign exchange does not have this problem, because when you buy one currency, you are selling another currency. So is the bear opposite you.