Alternate term for a short position in a financial security. A bear position attempts to profit in a market by betting that prices will fall for certain securities. The short seller borrows securities in the hopes that prices will decline. When the price drops, the investor makes a profit on the price change. When the price rises, the investor loses money. There are also numerous alternative ways to initiate bear positions such as buying put options or buying inverse ETFs.
A bear position is the opposite of a bull position. A bear position is a trade or investment that is made in the hopes that the security's price will drop. If a short sale moves against the investor or trader, the trader may be exposed to unlimited losses since the price of the security can continue to rise. This is in contrast to a long position where the price of the security can move against the investor only a certain amount; that is, to zero. The use of alternative strategies to initiate a bear position can mitigate some of these risks.
Investment dictionary. Academic. 2012.
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bear position — ➔ position1 * * * bear position UK US noun [C] FINANCE, STOCK MARKET ► SHORT POSITION(Cf. ↑short position) … Financial and business terms
bear position — / beə pəˌzɪʃ(ə)n/ noun STOCK EXCHANGE a short position, that is, selling shares which you do not own (you will buy them later at a lower price so as to be able to settle) … Dictionary of banking and finance
Position — A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into. The buyer of a commodity is said to have a long position and the seller of a commodity is said to have a short position .… … Financial and business terms
position — A market commitment. A buyer of a futures contract is said to have a long position and, conversely, a seller of futures contracts is said to have a short position. Chicago Board of Trade glossary Open contracts indicating an interest in the… … Financial and business terms
bear — A dealer on a stock exchange, currency market, or commodity market who expects prices to fall. A bear market is one in which a dealer is more likely to sell securities, currency, or goods than to buy them. A bear may even sell securities,… … Accounting dictionary
bear — A dealer on a stock exchange, currency market, or commodity market who expects prices to fall. A bear market is one in which a dealer is more likely to sell securities, currency, or goods than to buy them. A bear may even sell securities,… … Big dictionary of business and management
position — /pə zɪʃ(ə)n/ noun 1. a situation or state of affairs ♦ what is the cash position? what is the state of the company’s current account? ♦ to cover a position to have enough money to pay for a forward purchase 2. the state of a person’s current… … Dictionary of banking and finance
bear closing — The purchase of securities, currency, or commodities to close an open bear position. Bear closing can have the effect of firming up a weak market … Big dictionary of business and management
bear — /beə/ noun STOCK EXCHANGE a person who sells shares, commodities or currency because he or she thinks their price will fall and it will be possible to buy them again more cheaply later (NOTE: The opposite is bull.) ♦ taking a bear position acting … Dictionary of banking and finance
Bear Bryant — Bryant with trademark houndstooth hat Sport(s) Football Biographical details Born September 11, 1913 … Wikipedia