The Bull Market

Currency pairs on the Forex as well as other securities in the many financial markets around the world tend to move according to trends. While there are several ways to interpret their movements, the simplest way to describe one that is rapidly rising is by calling it a bull market.

Bull markets, just like the raging animal it alludes to, are markets where a currency is charging forward. This means that its value is either already surging up and is set climb even further in the near future or is about to making it highly attractive for investors. During this time, there is a higher than usual amount of positive sentiments and confidence in the market as traders look to go long on their positions and ride the surge towards profits.

This may sometimes be short lived, however, as markets, whether they be for commodities, stocks, or currencies, tend to behave unpredictably from time to time due to the behavior of traders. Sometimes, traders are described as bullish, meaning that they have taken on the belief that their trades will climb up and are looking to profit from it. This doesn’t mean, however, that the market where they are trading is a bull market, just that their attitude is marked by a high degree of optimism.

The opposite of a bull market is called a bear market. Here, securities are falling in value at such a fast pace that investors are rushing to sell which pushes prices even lower.