A Bear Market is a financial market condition where asset prices experience a prolonged decline. It is typically characterized by a drop of 20% or more from recent highs.
Signs of a Bear Market:
🔵 Long-term decline in asset prices (stocks, cryptocurrencies, etc.). 🔵 Investor pessimism and mass sell-offs. 🔵 Decrease in economic activity and GDP growth. 🔵 High volatility and sharp price crashes.
Causes of a Bear Market:
🔵 Economic crisis or recession. 🔵 Interest rate hikes by central banks. 🔵 Financial scandals or collapses of major companies. 🔵 Geopolitical instability.
How do investors act in a Bear Market?
🔵 Cautious strategy – buying low-volatility assets (gold, bonds). 🔵 Short selling – profiting from falling prices (selling first and buying back cheaper). 🔵 Long-term investments – purchasing promising assets at low prices and waiting for growth.
Futures are contracts to buy or sell an asset in the future at a predetermined price. Unlike spot trading, where purchases happen instantly, futures allow for delayed execution of trades.
How Do Futures Work?
— The buyer and seller agree on an asset price, but settlement occurs in the future.
— For example, a trader signs a contract to buy Bitcoin at $50,000 in a month. If the price rises to $55,000, they make a profit; if it falls, they incur a loss.
— Futures trading does not require actual ownership of the asset, allowing traders to profit from both rising and falling markets.
Types of Futures:
🔵 Delivery Futures — the buyer receives the asset upon contract expiration. 🔵 Perpetual Futures — have no expiration date; traders pay a funding fee to hold positions. 🔵 Leverage Futures — enable trading with borrowed funds, increasing potential profits but also risks.
Why Trade Futures?
— Hedging — companies and investors use futures to protect against risks. — Speculation — traders profit from price fluctuations without purchasing the asset. — Leverage — the ability to trade with capital exceeding the deposit. $BTC $PEPE $TRUMP
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