Where did bulls and bears come from?

Learn where bulls and bears came from and how this animal imagery caught on to be a central part of the financial markets until the present day. The terms "bulls" and "bears" are integral to the financial markets, as they describe the general actions and attitudes or sentiments of an individual or the market. Bulls refer to buyers and markets that rise in price, whereas bears refer to sellers and markets that decline in price.

While many traders learn the jargon at the very beginning of their trading careers, not many people are familiar with the history behind these terms. The very first connotation is due to the way each animal attacks its prey. A bull will thrust its horns up into the air while a bear will swipe down. However, you may be surprised to know there’s much more to it!

Historically, bears came first. The middlemen who would sell bearskins were referred to as bears. The reasoning behind the name is not as straightforward as you might think. It referred to the selling of the skins that were yet to be received. As such, the middlemen would speculate on the future price of these skins from the trappers, hoping that they would drop. Consequently, bears became shorthand for bearskin jobbers and also became a term describing a downturn in the market.

This usage was confirmed later on in history by a famous English scandal known as the South Sea Bubble. The name came for the South Sea Company, which was founded in the early eighteenth-century to trade with Spanish colonies in the New World. Once the king became the governor of the company, its stock became highly desirable. In a nutshell, stockholders were enjoying high returns, and the company assumed most of the British national debt. 

That way they convinced investors to give up state annuities for company stock, which was sold at a very high premium. The end of the story was rather unfortunate for most investors, as the stock price suddenly collapsed and most of the speculators had been selling the stock without actually owning it. This event led to the widespread use of the term 'bear'.

At around the same time, ‘bull’ made its first significant appearance on the market, as a counter to the bear. This term referring to a speculative purchase in the expectation that the price would rise has its origins in ancient matches where bears and bulls were fierce opponents. In the Elizabethan era in London as well as in ancient Rome, bears and bulls were put into an arena to fight one another.

This animal imagery caught on and has been a central part of the financial markets until the present day.

Source   Presented by OctaFXForex Columns
Factors That Affect Metals' Quotes

Trading CFD does not only mean trading currencies, stocks and indices, but also means trading Precious Metals. The most popular Metals on the market, of course, are gold and silver. Gold is the most...

How much do you need to know to trade forex

Gaining access to forex trading platforms is relatively easy and it is possible to begin forex trading without any preparation or knowledge at all. However, trading...

Becoming a super Forex trader

A guide on how to be a super trader that covers the best strategies, recommended materials, how to develop your own trading plan, and a risk management guide. The financial market...

How to become a successful day trader?

One of the best things about Forex is the ability to use it for long-term investments as well as for short-term ones. You can keep your position open for months, but a lot of people...

Top 10 Forex Awards Nominations 2020

All Forex Awards Nominations

Top Forex Nominees 2020

We are evaluating and honoring the best forex brokers in almost 30 nominations

FxPro Detailed review and information

FxPro is an award-winning online broker offering Contracts for Difference (CFDs) and Spread Betting on forex, futures, spot indices, shares, spot metals and spot energies. FxPro serves clients in...

NordFX Detailed review and information

NordFX is a leading multi-awarded international broker that offers individuals and companies a full set of services for Forex trading. Since its foundation in 2008, NordFX always keeps abreast of...

USG Detailed review and information

USG is committed to building long term relationships with its client. This company operates on trust, transparency and respect, and it is with these values and principles that they envision becoming...

Tickmill Detailed review and information

Tickmill is an award-winning global ECN broker, authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the FSA of Seychelles. Tickmill offers its retail and institutional...

Previous Years Forex Awards Announced Winners

We are evaluating the best achievements in the foreign exchange industry since 2010

© 2010-2019 Forex-Awards.com

The usage of this website constitutes acceptance of the following legal information, Terms, Conditions, Cookies policies.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including graphical information about the forex companies, brokers and others, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Awards shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the press releases or reviews made by the site contributors about the forex companies. The entire responsibility for the contents rests with the contributors and commentators. Reprint of the materials is available only with the permission of the editorial staff.