What are cows and bears? All stock index futures transactions must have buyers and sellers. In stock index futures trading, those who buy futures contracts are called bulls, and those who sell stock index futures contracts are called bears. The following is the meaning of bull and bear compiled by Bian Xiao, hoping to help everyone.
What do bulls and bears mean?
Bulls believe that the price of stock index futures contracts will rise, so they will buy; On the contrary, bears think that the price of stock index futures contracts is high and will fall in the future, so they sell them. Please note that in the stock market, buyers are also called bulls and sellers are called bears. But in stock trading, the seller must have stocks to sell, and people without stocks can't sell them. In stock index futures trading, it is different. Futures contracts can be sold without corresponding to a basket of stocks. The difference between the two is essentially the difference between spot and futures.
How do bulls and bears understand?
In the stock market, bulls refer to people who are optimistic about the stock's rise, and bears refer to people who are not optimistic about the stock's decline. Many times, bulls and bears are converted to each other. When the stock price is undervalued, the bears will turn into bulls, and when the stock price reaches a certain high level, the bulls will also turn into bears. So the bull and bear in the stock market are relative.
When we predict that our optimistic stock price will rise and buy this stock when the stock price is low, then we are bulls. When the stock price rises to a certain extent, we get a good profit, and we think the current stock price is a little too high, we will sell our stock and then we will short it.
Usually, when the stock market is in an upward trend, we call it a bull market. In the bull market, the stock price is mainly rising, even if there is a callback during the period, the range is limited, and the overall situation shows a pattern of big ups and downs. When the stock market is in a downward trend, it is called a short market. In the short market, the stock price is mainly falling. Although there is a rebound during the period, it will continue to fall back soon, which is reflected in the K-line chart that the low point of decline is lower than one.
Seeing this, I believe that everyone has fully understood the meaning of bulls and bears in stocks, and the main way to identify bulls and bears is to look at their operation direction. Those who buy stocks are bulls, those who sell stocks are bears, and those who buy and sell in the market are bull markets. On the contrary, those who sell more than they buy in the market are shorting the market.
What's the difference between bulls and bears?
1, long
Investors are optimistic about the stock market and expect the stock price to be bullish, so they will buy when the stock price is low and sell when the stock rises to a certain price, so as to obtain the difference income. This investment method is based on buying first, and investors have one more stock or commodity before _ _, so it is called long.
2. Uncompensated short-selling difference in securities or foreign exchange transactions
Bears and cows are relative. Investors and stock traders think that although the stock price is relatively high at this time, it is not optimistic about the prospects of the stock market, and the stock price decline is expected. So I sold the stock, hoping to buy back or cover the position after the stock price fell, so as to get the difference income. From selling to not buying back or covering positions, investors who have no physical objects in their hands are called short positions.
It is worth mentioning that bull market is also called bull market, and the main feature of stock price changes is a series of ups and downs. On the contrary, the short market is characterized by a series of sharp declines and small rises.
1, with different properties.
Long position is a speculative way in futures trading. Speculators estimate securities, commodities, etc. There is a tendency to increase prices, and buy in advance, in an attempt to increase prices after _ _ _, in order to obtain differential benefits. This kind of speculation is based on buying first. Speculators have more securities or commodities before _ _, so they are called "bulls". As opposed to a bear.
Bears are investors who think that although the current stock price is high, they are pessimistic about the stock market prospect and expect the stock price to fall, so they sell their stocks at a high price. This trading method of selling before buying and earning the difference from it is called short position.
2. Different characteristics
People usually refer to the stock market with a long-term downward trend as a short market, and the changes of stock prices in the short market are characterized by a series of sharp declines and small increases.
Small-cap and medium-long-term stocks started to rise first, and new highs kept appearing. News that is not conducive to the stock market frequently comes out, but when the stock price does not move, it is time for bulls to buy. When the news of Lido was published in newspapers and magazines, the share price rose.
3. Different influences
For small and medium-sized investors, under the current conditions, short-selling mechanisms such as stock index futures can only mean an increase in risk. Short selling mechanism is a game of the strong. As a vulnerable group in the stock market, it is extremely vulnerable for small and medium-sized investors to participate in this dangerous game without the protection of laws and systems.
Bulls represent an actual trading direction, not a specific group of people, not many people buy bulls, but many forces are greater than the empty side. Multi-index can only play a certain reference role for investors, and cannot be used as a decisive factor in investment. In addition, the long-short trend needs a period of time to change, so it generally lags behind the actual trend of stocks.
To sum up, we know that both bulls and bears belong to investment and are trading forms of stock index futures in different directions. In futures, bulls buy at a low price and then sell at a high price; Bears sell first, then buy at a low price.