Efficient Market Hypothesis
Efficient Market Hypothesis, or “EMH”, is a theory which claims that beating the market is impossible.
According to the EMH, stocks and currency always trade at their fair value on exchanges and reflect all available information, making it impossible to make a profit from the markets or any trading strategy.
Under the EMH, the only way to earn higher returns than those of an index is thus to buy higher-risk investments.
The EMH is highly controversial and often disputed by financial professionals and experts all over the world.Back to Glossary