trding.io
Basics

Bear market — definition & meaning

A market in a sustained downtrend, often defined as a 20% fall.

A bear market is a prolonged period of falling prices, commonly defined as a drop of 20% or more from recent highs.

'Bearish' describes an expectation of falling prices. Bear markets bring fear and sharp swings; traders can profit by going short, but timing them is notoriously hard.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Bull market
A market in a sustained uptrend, with rising prices and optimism.
Correction
A moderate fall in price, often defined as a drop of around 10%.
Short
Selling an asset you expect to fall, aiming to buy it back cheaper.
Trend
The general direction a market is moving over time.
Long
Buying an asset expecting its price to rise so you can sell higher.
Bid
The highest price a buyer is currently willing to pay.

Keep going

Compare brokers
Neutral scores on regulation, fees and more
Real cost of trading
Rank brokers by real annual spread + commission
Broker regulation checker
Who regulates each broker, with official registers
Find your broker
A 60-second quiz matched to your profile
Position size calculator
Size a trade to a fixed risk
Learn to trade
Free, plain-English courses and guides