• Shahn Khan

Long, Short, Bull, and Bear, What does it all mean in the Stock Market?

Long: In Trading, you can consider "long" as another word for "buy." If you're "going long" in stock, it means you're buying it. This way, you can sell it for a higher value than you paid for it and reap.

Short or Shorting: This is essentially borrowing the asset, selling it, then buying it back.

In the futures and forex market, you can short any time you wish.7 In the stock market, there are more restrictions on which stocks can be shorted and when.8 9 No matter the market, if you hear someone say they are shorting something, it means they believe the price will go down.

Bull or Bullish: The term "bull" or "bullish" comes from the bull, who strikes upward with his horns, thus pushing prices higher.

A bull market is when the stock price is in raise and trending up over a sustained period, for many days or months. Bullish, bull, and long are used interchangeably.

Bear or Bearish: The term "bear" or "bearish" comes from the bear, who strikes downward with its paws, thus pushing prices down.

A bear market occurs when an investment's price is falling—called a downtrend.

They’re simplified labels to describe market movements up or down over time. You’ll notice the words’ meanings have expanded to capture the general sentiment of stocks, markets, industries, or even just investor feelings of optimism or pessimism.

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