Falling Knife
Definition
The term falling knife refers to buying an asset whose price is falling rapidly and warns investors not to act hastily in case of sudden declines.
Falling knife is a term used for an asset whose price is falling rapidly and indicates to investors that they should be careful before investing in this asset. This term refers to situations where the price of the asset shows a sudden decrease. Investors should avoid hasty investments when faced with a risky situation such as a falling knife, thinking that a sudden price decline is at the end and the asset has the potential to decline further. Therefore, investors often wait to see the price stabilize and start rising again rather than trying to catch the falling knife.
This entry is part of the JrKripto crypto glossary. We explain key terms and concepts to help investors and traders understand the cryptocurrency market. Clear definitions support better decision-making and risk management.
Browse the full JrKripto glossary for more definitions on trading, DeFi, blockchain, and market analysis. Each term includes a short definition and extended explanation to support your research.
The JrKripto crypto glossary explains important terms and concepts so investors can understand the market better. Clear definitions support decision-making and risk management. Each entry has a short definition and, where useful, an extended explanation for quick reference or deeper reading.
The glossary covers a wide range of topics from trading and DeFi terms to blockchain infrastructure and market indicators. You can find terms via search or the term list. Use the related terms section to discover related concepts.
