Hallucination
When an AI model states something false or made up with confidence, such as a wrong number, a fake source or code for a function that does not exist.
Why it matters for AI trading tools
A hallucinated price, fee or API call can cost money. Verify facts against official sources and test code before using it.
Related on TraderStacks
More terms: Prompt · Context window · all terms
Education only. This definition explains a concept; it is not investment advice or a suggestion to trade.