Exchanges, bubbles and central banks · 1600s–1790s
Early 1700s
Bulls and bears in London
Traders in Exchange Alley start calling sellers bears and buyers bulls.
In London's Exchange Alley, a trader who sold shares he didn't own was said to sell the bearskin before catching the bear, and short sellers became "bears". Buyers who pushed prices up became "bulls".
💡 Why it made sense then
Markets have always needed quick words for the two sides of a bet.
Ideas it gave us
- 📈 Bear market
A bear market is a long period of falling prices, usually a drop of 20% or more from a recent high. Being bearish means expecting prices to fall.
- 📈 Bull market
A bull market is a long period of rising prices, often defined as a 20% rise from a recent low. Being bullish means expecting prices to go up.
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