Correction (Korrektur)
A price decline of roughly 10 to 20 % from the most recent high.
In short
As of 8 October 2026A correction is a price decline of roughly 10 to 20 percent from the latest high. If the market falls by more than 20 percent, it is called a bear market; a very fast fall is called a crash. Corrections are normal on the stock market and happen on average about every one to two years.
A correction is when an index or stock falls roughly 10 % to 20 % below its latest high. If the market drops more than 20 %, it is called a bear market. If the fall is very fast, people speak of a crash.
Corrections are normal and happen on average every one to two years. They can follow a strong run-up in prices or be triggered by bad news. If you invest through a savings plan, you automatically buy more cheaply during a correction; that is cost averaging.
Example: the DAX stands at 24,000 points and falls to 21,000 within three months. That is a 12.5 % drop, so a correction. How often this has happened historically is shown in the DAX return triangle.
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.