The situation facing short sellers of a security or index when a bear market reverses its trend and becomes bullish. The assets continue to sell in anticipation of further declines in prices, but when the price reverses direction and starts to rise, short sellers are forced to close their short positions at higher prices, meaning that will have big losses.
The unexpected trend reversal traps short positions hence the term “bear term”.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
