- A technician's term to describe a market in which the price has risen relatively quickly-too quickly to be justified by the underlying fundamental factors. The CENTER ONLINE Futures Glossary————Used in the context of general equities. Technically too high in price, and hence a technical correction is expected. Bloomberg Financial Dictionary————A technical opinion of a market which has risen too high in relation to underlying fundamental factors. Chicago Mercantile Exchange Glossary————A term describing a market (or a particular security), which is at an artificially high price level due to excessive buying. When a market (or security) is believed to be overbought, it is also believed to be due for a downward correction. On the other hand, when a market (or security) is believed to be oversold, it is believed that there has been excessive selling and the price is due for an upward correction. London Stock Exchange Glossary
* * *overbought o‧ver‧bought [ˌəʊvəˈbɔːt ǁ ˌoʊvərˈbɒːt] adjectiveFINANCE if a financial market is overbought, prices are higher than many people think they should be, and will probably come down:
• He thinks the gold market is overbought and there will be a correction in two to three months.
* * *When prices have risen more than they should according to fundamental factors. This could mean the market is liable to a downward correction. In technical analysis, an instrument is overbought when it registers more than 75 percent on its RSI. The opposite of oversold.
* * *overbought UK US /ˌəʊvəˈbɔːt/ adjective► FINANCE used to describe financial markets, shares, etc. where prices have risen too far in relation to their real value: »
Investors remain worried about valuations and claims that the market is overbought.
Financial and business terms. 2012.
Look at other dictionaries:
Overbought — 1. A situation in which the demand for a certain asset unjustifiably pushes the price of an underlying asset to levels that do not support the fundamentals. 2. In technical analysis, this term describes a situation in which the price of a… … Investment dictionary
overbought — 1) Having purchased more of a good than one needs or has orders for. 2) Having purchased more securities or commodities than are covered by margins deposited with a broker or dealer. In a falling market, for example, a bull speculator can become… … Big dictionary of business and management
overbought — /ˌəυvə bɔ:t/ adjective having bought too much ♦ the market is overbought prices on the stock market are too high, because there have been too many people wanting to buy ▪▪▪ ‘…they said the market was overbought when the index was between 860 and… … Dictionary of banking and finance
overbought — adjective Date: 1929 not likely to show an immediate rise in price because of prior heavy buying and accompanying price rises < an overbought market > … New Collegiate Dictionary
overbought — /oh veuhr bawt /, adj. 1. marked by prices considered unjustifiably high because of extensive buying: The stock market is overbought now. Cf. oversold. v. 2. pt. and pp. of overbuy. [1955 60; OVER + BOUGHT] * * * … Universalium
overbought — adjective A stock or commodity market condition where there has been significant trading bidding up prices to higher levels, levels which seem overextended or excessive on a short term basis. Ant: oversold … Wiktionary
OVERBOUGHT — Период, используемый для выражения мнения, что цены повысились слишком высоко и слишком быстро, следовательно будет понижение цен. Дословно рынок перекуплен … Малая энциклопедия трейдера: глоссарий к книге
overbought — oÂ·ver buy || â€šÉ™ÊŠvÉ™(r)baÉª v. buy in excessive quantity; buy more than one can afford to pay for … English contemporary dictionary
Overbought — A positive open currency position … International financial encyclopaedia
overbought — past and past participle of overbuy … English new terms dictionary