CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
When a market, instrument or sector is on an upward trend, it is generally referred to as a bull market.
This is because bulls are seen as having taken control. If the market is instead on a sustained downward trajectory, it is called a bear market because bears are in the ascendancy. Bull markets are usually typified by wide-ranging optimism and confidence, with positive news driving more gains and negative news more likely to be overlooked.
Bull markets can apply to various financial markets, including commodities, shares, currencies and indices. While they are often brought to a conclusion by a tangible negative result such as poor earnings or economic figures, often the tide of opinion can reverse a bull market. Because of this, it is difficult to spot when a bull market might be beginning or finishing.
Learn more about spotting when markets move in our technical analysis course.
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