- reversal
- turn, unwind . For convertible reversal, selling a convertible and buying the underlying common, usually effected by an arbitrageur. For market reversal, change in direction in the stock or commodity futures markets, as charted by technical analysts in trading ranges . For options reversal, closing the positions of each aspect of an options spread or combination strategy. Bloomberg Financial Dictionary————An example of an arbitrage trade, where the future is sold and a synthetic future is purchased by buying a call option and selling a put option with the same maturity and strike price on the same underlying asset. Entered into when the relationship described as put/call parity has broken down, and the futures is relatively expensive to the synthetic. The opposite of a conversion. Dresdner Kleinwort Wasserstein financial glossary
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reversal re‧vers‧al [rɪˈvɜːsl ǁ -ɜːr-] noun1. [countable] a change to an opposite arrangement, process, or course of action:reversal of• The move was a reversal of Kodak's previous policy.
reversal in• Money managers predict a reversal in the industry's rising share values.
2. [countable] a failure or other problem that prevents you from being able to do what you want:• In spite of setbacks and reversals, his business was at last making money.
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In technical analysis, a reversal is a change in trend. Many technical analysts use patterns in price charts to spot a reversal. Key reversal patterns include head and shoulders, triple top/bottom, double top/bottom and V-formation/spikes.► See also Patterns, Technical Analysis.* * *
reversal UK US /rɪˈvɜːsəl/ noun► [C or U] a change in something so that it becomes the opposite of what it was before: »What led to the reversal of the policy?
»The policy has undergone a complete reversal.
a reversal of sth »There has been a reversal of the decision to reduce staff in HQ.
a reversal in sth »We are hoping for a reversal in the downward trend of sales.
»The company has recently experienced a reversal of fortune.
► [C ] a problem or failure that makes it more difficult for a person or organization to be successful: »The business suffered several reversals when it first entered the Asian market.
»The resignation of the CEO represents a significant reversal for the company.
Financial and business terms. 2012.