Investment Glossary · Quick read · No ads
Bear Trap
The short answer
A false signal suggesting a declining trend has reversed upward, luring short sellers to close positions at a loss when the price continues falling.
What is Bear Trap?
A false signal suggesting a declining trend has reversed upward, luring short sellers to close positions at a loss when the price continues falling.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
