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General TradingF
Fading
Fading is a contrarian trading strategy that involves taking a position against the prevailing trend or momentum. A trader who fades a move sells into a rally or buys into a sell-off, betting that the move is overextended and will reverse.
Example
“After Bitcoin surged 15% in a single day on hype alone, the experienced trader faded the move by opening a short position, expecting a pullback to the mean.”