Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite-sized pieces.
In this "Markets in Focus," we take a closer look at Bull and Bear Markets. What do these terms mean, and how can you profit from them?
What Are Bull and Bear Markets
In investing, "bull" and "bear" are common terms used to describe market conditions. These terms indicate the general trend of stock markets.
Bull Market
A bull market refers to a period where market conditions are generally favorable, and prices are rising. In equity markets, a bull market is characterized by a sustained increase in the prices of company shares. During a bull market, investors typically have confidence that the upward trend will continue over the long term. This scenario often corresponds with a strong economy and high employment levels.
Bear Market
Conversely, a bear market is marked by declining prices. A market is generally considered a true bear market when it has fallen 20% or more from recent highs. In a bear market, share prices continuously drop, creating a downward trend that investors believe will persist. This belief perpetuates the decline. Bear markets are often associat
Can You Profit in Both Bull and Bear Markets
Yes, you can profit in both market conditions. When trading CFDs at Change, traders can go long or short. If they believe the market is bullish, they can open a long position. Conversely, if they believe the market is bearish, they can open a short position. This flexibility allows traders to potentially profit in both bull and bear markets.
Markets and Change
With the Change App, you can trade in any market condition from Monday to Friday.
Until next week!
