In the stock market, investors who speculate on falling prices are called bears. In a bear trap, bearish investors enter a short position based on a price signal and thus speculate on falling prices. Contrary to expectations, prices begin to rise after entry, so that investors are now holding a losing position with their short position.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.