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 edition of Markets in Focus, we take a closer look at Bull and Bear Markets - what these terms really mean, and how you can potentially profit from them.
What Are Bull and Bear Markets
In investing, “bull” and “bear” are metaphors for market trends:
- A bull market describes a period when prices are generally rising and investor optimism is high.
- A bear market is when prices are falling, often sharply, and pessimism dominates.
Many analysts use a rule of thumb: a drop of 20% or more from recent highs is often characterized as a bear market.
Why Markets Go Bullish or Bearish
- Bull markets often coincide with strong economic indicators - think GDP growth, low unemployment, rising corporate profits, and investor confidence.
- Bear markets, on the other hand, may be triggered by economic slowdown, rising interest rates, inflation, or other risk factors that erode confidence.
Can You Profit in Both Bull and Bear Markets?
Yes - especially with CFDs (Contracts for Difference) on Change.
- When you believe in a bullish trend, you can open a long CFD position.
- If you expect a bearish phase, you can go short.
- That flexibility lets you potentially profit whether markets are going up or down.
Using Change for Hedging & Trading Across Market Cycles
With the Change App, you can trade CFDs across market conditions (bull or bear) from Monday to Friday - giving you access to strategies for both growth and protection.
Until next week - trade smart, in any market direction!
