Learning how to make money in a bear market is an essential ability for anyone in the markets who wants to succeed when prices fall. In a downtrend, simply holding stocks might not work, but alternative tactics like short selling can generate returns.
When discussing settlement terms, an alternative name for cash payment settlement option is often monetary settlement, meaning the no physical asset is delivered.
An comprehensive course on options can equip traders with knowledge such as distinguishing between call and put options. A call gives the ability to acquire an asset at a set price, while a put contract gives the opportunity to sell it.
In trading terminology, the difference between buy to open and buy to close is important. Opening a position by buying means starting a new contract, while buy to close means ending an existing short.
The popular iron condor technique is a limited-risk/limited-reward structure using both a call spread and a put spread, aiming to earn premium in a sideways market.
In market orders, bid compared to ask reflects the two sides of a quote. The buy bid is what the market will pay, and the ask is what is required to sell.
For options, differences between sell to open and sell to close is another distinction. Selling to create a position means opening a short position, while Closing a long position by selling means ending a long trade.
Rolling options is extending or changing terms by shifting strike or expiration to manage risk.
A trailing stop is a moving stop order that limits downside by tracking price in real time. This is not to be confused with a fixed stop, since it adjusts without manual input.
Chart what is a trailing stop patterns like the M-shaped double top signal a bearish setup after two highs at the same level. Recognizing it can trigger short entries.
Overall, mastering these strategies — from call vs put option to how trailing stops work — prepares market participants to navigate complex markets.