Mastering strategies for earning in a bear market is a crucial skill for anyone in the markets who seeks consistent profits when the trend is bearish. In a bear market, buy-and-hold strategies can underperform, but diversified strategies like short selling can produce profits.
When discussing settlement terms, the other term for cash payment settlement option is often monetary settlement, meaning the transaction is settled in cash.
An options trading course can cover advanced strategies such as distinguishing between call and put options. A call gives the right to buy an asset at a set price, while a put option gives the right to sell it.
In trading terminology, the difference between buy to open and buy to close is important. Opening a position by buying means initiating exposure, while Purchasing to exit means closing an open short trade.
The popular iron condor technique is a neutral-market options strategy using multiple calls and puts, aiming to profit from low volatility.
In market orders, bid vs ask reflects the two sides of a quote. The buy bid is what a trader offers to buy, and the offer is what the market demands.
For options, understanding sell to open and sell to close is another distinction. Selling to create a position means starting exposure by selling, while sell to close means ending a long trade.
Option rolling is adjusting an existing trading plan trade by closing one contract and opening another to adapt to market changes.
A trailing stop is a moving stop order that locks in profits by adjusting as the asset moves. This is not to be confused with a fixed stop, since it tightens automatically.
Chart patterns like the double top chart pattern signal a bearish setup after two highs at the same level. Recognizing it can help traders exit early.
Overall, learning these definitions — from call vs put option to how trailing stops work — gives investors tools to navigate complex markets.