Terms Beginning With 'b'

Bull Trap

  • January 17, 2020
  • Team Kalkine

An erroneous sign that represents a weakening trend in an index or a stock is known as bull trap. Under the bull trap, market participants are forced to exit positions with unexpected losses. It is seen as a trap because the investors buy a stock assuming that the price of the stock will increase but are trapped due to the deteriorating performance of the stock whose value is still declining.

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