Definition

Expectation

Meaning ⎊ The projected future outcome of a market or asset based on available data and investor consensus.
Greeks.liveMarch 9, 2026

Expectation

Expectation in finance refers to the anticipated future performance or outcome of an asset or market. It is formed based on current information, market sentiment, and historical data.

Traders build strategies based on their expectations. If the actual outcome differs from expectations, significant price movements can occur.

Managing expectations is key to disciplined trading.

Bearish Outlook
Cost Reduction
Asset Appreciation
Risk Assessment
Risk Variance
Long Term Investing
Trading Strategy
Multiplier

Glossary

Expectation Theory Framework

Framework ⎊ The Expectation Theory Framework, within the context of cryptocurrency, options trading, and financial derivatives, posits that the price of an asset reflects the market's collective expectation of its future cash flows and associated risk.