HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Bullish vs. Bearish: What's the Difference?


Bull vs bear describes investment trends that have the power to impact the global financial markets.  You’ve probably heard investors refer to a market as being either bearish or bullish based on negative or positive price movements. But what does it mean? 

When the terms “bull market” or “bear market” are used by analysts, they’re describing either a pessimistic market (dropping or potentially dropping) or an optimistic one (rising or potentially rising). What separates bearish markets from bullish ones is the confidence of a price remaining high and rising, or remaining low and dropping. More to the point, the terms “bearish” and “bullish” describe the market’s actual state – specifically, if it’s losing value (downtrend) or gaining value (uptrend). 

Why are they Called Bear & Bull Markets?


The terminology is in reference to how animals attack prey. For instance, bears stomp their paws on a prey, while bulls thrust their horns upward.

What is a Bull Market?


A bull market is a financial market (whether it’s currency pairs, shares, metals or commodities) where prices are rising or are expected to rise.

Traders' expectations, general optimism, and confidence in ongoing uptrends are the characteristics of bull markets. Such uptrends tend to last for a while (weeks, months, and even years) based on surrounding circumstances. Simply put, bull markets refer to a rising market, and investors believe that long-term uptrends will continue. For the most part, in these situations, employment levels and GDP remain high, and the economy of the country is strong.

What is a Bear Market?


If the bull market describes growth and stability, the bear market represents the opposite: pessimism, loss on investments, and a usually regarded “weak” economy.

The market condition of bear markets is characterized by a pessimistic outlook and declining prices. Traders start selling (as opposed to buying) in an attempt to break free from losing positions. They are usually influenced by bleak economic news, as well as statistics like low employment rates. Moreover, psychology has a big impact on the bear market’s initial stage, since traders who think something bad will happen to take action and sell assets to protect themselves from losses.

In bear markets, an economy will generally slow down. Although people with “bearish outlooks” are people with pessimistic opinions, many expect such fluctuations to be short-term and look for signs of potential revivals.

Profit from Rising and Falling Markets


When you trade Contract for Difference (CFDs), you will always have the option to go both long and short – so you can take advantage of markets that fall in price, as well as those that rise. 

#source


RELATED

Forex vs. CFD: Which One is Better?

Probably, every trader has faced the abbreviation CFD. But if you ask what this means, in most cases, the answer is: it's something similar to Forex, only for stocks...

InvestLite: Definition of margin trading

As margin is a widely used tool in trading, we need to understand margin definition, buying stock on margin, and how it applies in practice. This article is going to answer...

What is stock split and stock split reverse?

Apple, Amazon and Tesla have all split their stocks in the past in order to make their shares more accessible to retail investors. In the following article you will learn what a stock split is...

Investing In Artificial Intelligence (AI): A Beginner’s Guide

Investing in artificial intelligence (AI) has become an increasingly popular choice for investors as the technology continues to reshape industries and drive innovation...

A Guide to Demo Trading Accounts

Embarking on your trading journey is akin to stepping into a vast, dynamic universe with its own set of rules. Whether you aim to explore the realms of forex, delve into precious metals...

10 Reason to Trade Forex

Foreign exchange, or more colloquially known as forex or FX, is the buying and selling of currencies to make profits based on the changed currencies' values...

Negative Balance Protection: What Is It And How Does It Work

Contract for Difference (CFD) trading is a popular form of investment, but as with any investment, it involves a degree of risk. Managing risk in trading is critical to protect your capital...

What do alpha and beta mean in investing?

Alpha and beta are indicators for evaluating the effectiveness of investments. Alpha measures the performance of an asset or a portfolio relative to the market...

Tight spreads. High liquidity. Instant execution

It's commonly believed that success in currency trading comes from professionalism and luck. However, often it's far from the truth. You should always remember that...

Litecoin Trading: A Brief Guide for Beginners

Litecoin (LTC) is one of the oldest and most popular cryptos on the market. It is often called "digital silver to Bitcoin’s gold", and for good reason. On the technical side, both cryptos...

Why Choosing The Right Broker Is Critical

Forex trading is an equal opportunity vertical. There are no exams, no prerequisites, no prior experience needed to start trading. All you have to possess...

What Financial Markets Are and Why They are Important

When we talk about stocks, currencies, bonds and cryptocurrencies, we may not think that all of these assets relate to particular financial markets. And what is a financial market, anyway?

The Economic Calendar Is a Useful Tool for a Trader

The quotes of currency pairs, as well as cryptocurrencies, stocks, gold, and other assets, are influenced by many different events taking place in the world. These are parliamentary...

What trading animals do you find in the stock market?

We bet you watched Wolf of the Wall Street with Leonardo DiCaprio playing Jordan Belfort. Have you ever wondered why the main character was referred to as a wolf?

A brief article on Investing in Silver CFDs

Gold and Silver are precious metals that has been known to man since the olden days. Investing in Silver and Gold also dates back to prehistoric times...

Trading terminal MetaTrader 4: features and capabilities

Trading terminal MetaTrader 4 is the most popular software solution for financial market trading today. The platform boasts user-friendly interface, easy...

Q2 2022 Earnings Season Explained

Earnings season is a few weeks when most public companies share their quarterly performance in their earnings reports. It takes place every three months...

A Guide to Trading EURUSD

EUR/USD is the currency pair which matches the exchange rate of euro (EUR) against the US dollar (USD). Traders can trade EUR/USD using financial derivatives like contract-for-differences (CFDs)...

What is a Good Profit Margin in Trading?

Profit margin measures the earnings relative to the revenue. The three main margin metrics are gross profit margin, operating profit margin, and net profit margin...

Understanding the Nuances of Limit Orders in Trading

In the intricate and fluctuating world of trading, limit orders emerge as an essential tool for investors and traders aiming to assert control over their transaction prices...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.