Trading Basics
Cut and Reverse
When a position is fully reversed and an opposing position taken in a single trade.
Other Trading Basics
Bear Trap
When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.
Annuity
A guaranteed income for the rest of someones life.
Historically purchased with pension lump sums.
The buyer is swaping cash now for future income.
Bear Market
A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.
For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.
Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.