A decline in asset prices of at least 10% from their recent highs.
A correction in financial markets refers to a decline in the price of a security or market index by at least 10% from its recent peak. Corrections are a normal part of market cycles and can be triggered by various factors, including shifts in investor sentiment, economic data, or geopolitical events. They are generally considered less severe than bear markets, which are defined as declines of 20% or more.