Bull and Bear Markets

When you read financial newspapers, you often encounter the term "bull market" or "bear market". Also, you can read about "bulls" and "bears". However, as you know, animals don't trade in the currency markets, so it means something else.

A bull market is a market where prices are going up. For example, the stock market was a bull market in the years 2003-2007. A bear market is a time of declining prices and uncertainty in the market, like after the dot com bubble crash.

The forex market does not have official bull and bear markets because currencies do not have a long term tendency to rise like stocks. However, If an analyst or a forex broker says he's "bullish" on a currency, it means that he believes that this currency will rise over currencies. If an analyst says he's "bearish" on a currency, it means that he believes that this currency will go down against others.

Catch the bulls,
Nadav

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