Bear Position

Filed Under » ,
Dictionary Says

Definition of 'Bear Position'

Alternate term for a short position in a financial security. A bear position attempts to profit in a market by betting that prices will fall for certain securities. The short seller borrows securities in the hopes that prices will decline. When the price drops, the investor makes a profit on the price change. When the price rises, the investor loses money. There are also numerous alternative ways to initiate bear positions such as buying put options or buying inverse ETFs. 

Investopedia Says

Investopedia explains 'Bear Position'

A bear position is the opposite of a bull position. A bear position is a trade or investment that is made in the hopes that the security's price will drop. If a short sale moves against the investor or trader, the trader may be exposed to unlimited losses since the price of the security can continue to rise. This is in contrast to a long position where the price of the security can move against the investor only a certain amount; that is, to zero. The use of alternative strategies to initiate a bear position can mitigate some of these risks.

Video Definition


Search results for

'Bear Position'

  • Profiting From Stock Declines: Bear Put Spread Vs. Long Put

    http://www.investopedia.com/articles/optioninvestor/09/bear-put-spread-long-put.asp
    ... Advertisement - Article continues below. As an alternative, the trader may instead
    consider entering into a position known as a bear put spread. ...
  • Using Open Interest To Find Bull/Bear Signals

    http://www.investopedia.com/articles/technical/02/112002.asp
    Using Open Interest To Find Bull/Bear Signals. ... off and prices are declining, the
    price decline is likely being caused by disgruntled long position holders being ...
  • Vertical Bull and Bear Credit Spreads

    http://www.investopedia.com/articles/optioninvestor/02/041202.asp
    ... will reduce to zero at expiration if the underlying has remained stationary or has
    not crossed beyond the short strike in the position. Coffee Bear Call Spread. ...
  • Banking Profits In Bull And Bear Markets

    http://www.investopedia.com/articles/stocks/09/profit-in-bear-bull-markets.asp
    ... The following are some ways to profit in bear markets. Short Positions. Taking a
    short position, also called short selling, occurs when you sell shares that you ...
  • The Art Of Selling A Losing Position

    http://www.investopedia.com/articles/02/022002.asp
    ... in the spring of 2000 and the market started its descent into a bear market, investors ...
    If so, it is better for you to offload the position in the company, as ...
  • The Uptick Rule: Does It Keep Bear Markets Ticking?

    http://www.investopedia.com/articles/financial-theory/09/uptick-rule.asp
    ... of a point - at the very least - before a new short position could be ... Bear raids
    and plummeting stock prices erode investor confidence, so the SEC enacted new ...
  • Surviving Bear Country

    http://www.investopedia.com/articles/01/031401.asp
    ... Short Selling Another approach to a bear market is to adopt a more aggressive strategy.
    A short position allows an investor to profit as the stock heads ...
  • 7 Ways To Position Yourself For Recovery Slideshow | Investopedia

    http://www.investopedia.com/slide-show/position-recovery
    7 Ways To Position Yourself For Recovery. ... 7 Ways To Position Yourself For
    Recovery. In a gloomy economic marketplace, it's easy to ...
  • 7 Ways To Position Yourself For Recovery Slideshow | Investopedia

    http://www.investopedia.com/slide-show/position-recovery/diversify.aspx
    7 Ways To Position Yourself For Recovery. ... 7 Ways To Position Yourself For
    Recovery. In a gloomy economic marketplace, it's easy to ...
  • 7 Ways To Position Yourself For Recovery Slideshow | Investopedia

    http://www.investopedia.com/slide-show/position-recovery/time-horizon.aspx
    7 Ways To Position Yourself For Recovery. ... 7 Ways To Position Yourself For
    Recovery. In a gloomy economic marketplace, it's easy to ...

Related Articles

Partner Links