Forex Dictionary Terms

Bias

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Generally understood as the idea that, in the world of trading, some individuals or organisations may have a preference for particular security to move in a certain direction. This may be the result of a financial interest in the trading outcome, or the result of certain belief systems or notions. If a trader becomes biased, this is usually a reference to the fact that they have not observed the markets objectively.

In statistics, bias represents an inaccuracy in data which has occurred during some stage of its generation or presentation. In many cases, this will have been the deliberate intention of the data creator and will serve some financial, political or publicity-conscious purpose.

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