Earn2Trade Blog
Bulls and Bears

Bulls and Bears

The terms bear market and bull market are used for a falling and rising market, respectively. Most traders are quite familiar with these terms, but the origins are less obvious.

You might also enjoy:

Have you heard of “bear jobbers”? People called them “bears” for short. They would sell the fur of bears for the trappers, often before they had received the pelts. This means they were effectively short-selling pelts. They kept the profits on the spread of what they sold the pelts for versus their costs. This is one source people cite as to why we call it a bear market to this day.

Another source of these terms comes from the bull and bear blood sports popular in the 1800s in California. They would leash a bull and bear together loosely and have them fight brutally, often after Sunday church services. Either could win, but the bears took more victories. Considering these origins, it is easy to imagine choosing the bull as the opposite type of market to bear.

The simplest and most common origin for these names comes from their methods of attack. A bull lowers its head and then thrusts it upwards to attack, and a bear raises up and attacks with downward claw strikes.

This naming trend continues today in Chicago’s major league teams. Since the city is a major hub of market speculation, the list includes the Bears, the Cubs, and the Bulls.

Get to know the Trader Career Path

We hope you enjoyed this article.

Put your skills to the test with the Trader Career Path, our funding evaluation designed for traders to prove their skills and build a trading career. Traders who pass the evaluation get a funding offer from a proprietary trading firm and keep 80% of the profit they make from it. Don't miss this opportunity! Contact us to learn more. Take the first step towards your new trading career today