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General TradingF
Falling Knife
A falling knife refers to a sharp decline in the price of an asset. The term comes from the saying 'don't try to catch a falling knife,' warning traders against buying into a steep downtrend without confirmation of a reversal.
Example
“When LUNA crashed from $80 to $10 in a single day, many traders tried to catch the falling knife only to watch it plummet further to near zero.”