Forex Term

Bear Market

A sustained period of falling prices and pessimism.

A bear market is a sustained period of falling prices and pessimism, where sellers dominate and rallies tend to fade. In forex it describes a currency weakening steadily against another. Traders may look to sell, or go short, in the direction of the downtrend.

Example

A currency sliding for months on weak growth and rate cuts is in a bear market.

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Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.