Simply put, a bear market is one in which prices are heading down and a bull market is used to describe conditions in which prices are rising. When the bulls reign in the market, people are looking to invest money; confidence is high and the acceptance of risk generally goes up. Conversely, bull markets typically lead to a decline in safe-haven currencies such as the Japanese yen, the Swiss franc CHF and, in some cases, the U.
One of the key benefits of forex trading is the opportunity it offers traders in both bull and bear markets. This is because forex trading is always done in pairs, when one currency is weakening the other is strengthening thereby allowing you to take advantage of rising and falling markets. Bull and bear markets are important to pay attention to as they can determine currency market trends.
By being aware of market trends, can help you to make the best decisions of how to manage risk and gain a better understanding of when it is best to enter and exit your trades.
Bearish markets follow a downward trend as investors sell riskier assets such as stocks and less-liquid currencies such as those from emerging markets. This is because forex trading is always done in pairs , when one currency is weakening the other is strengthening thereby allowing you to take advantage of rising and falling markets.
A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account.
Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment. Please let us know how you would like to proceed. What Are Bearish and Bullish Markets? What Happens in a Bull Market? Why Does It Matter to You?
In a bull market, traders are looking to enter the market when prices are rising so that they can sell once they believe the market has reached its peak. What Happens in a Bear Market? In a bear market, traders are looking to enter the market when prices are falling so that they can buy once they believe that market has reached its peak. Related Topics Technical Analysis Support and Resistance Identify the effects of support and resistance have on financial charts. Learn to use Bullish and Bearish Flags to aid in your decision making.
Identify opportunities in the forex markets using the Bearish Gartley Pattern. Identify opportunities in the forex markest using the Bullish Gartley Pattern.More...