meaning of Bear Trap

Bear Trap meaning in Finance Dictionary

In charting, a temporary reversal of an upward trend, getting completely bears and shorters who have been hoping to benefit from a fall in the share price.

Bear Trap meaning in Law Dictionary

situation in which a brief SELLER, anticipating additional decreases in cost of a safety, does not COVER its place in a rapidly rallying marketplace, sustaining losings. See also BRIEF SQUEEZE.

Bear Trap meaning in Business Dictionary

a scenario which investors who sold short close to the base of a down period end up caught if the market unexpectedly reverses. As longs start to go into the marketplace, the short pants start buying their particular way out of these losing roles, which further fuels the ascending price momentum and anxiety purchasing for the remaining short-sellers who're nonetheless on the market. Once the brief covering is complete, the ascending energy slows while the marketplace often resumes its downward trend. Compare to Bull Trap. See Whipsaw.