Forex Dictionary Terms

Dollar Bear

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Definition – What does Dollar Bear mean?

A dollar bear is a currency trader or investor who is very pessimistic about the future value of the U.S. dollar (USD) compared to other currencies. If a dollar bear follows through on his beliefs, he will take up short positions against the USD.

ForexTerms explains Dollar Bear

The USD is a major currency in the world and makes up a portion of many of the most traded currency pairs. Therefore a dollar bear has many options for shorting the USD, but he may choose to do so against one or two currencies in order to keep the trade manageable. There are, of course, many reasons to be negative about the U.S. economy at anytime, but there are just as many reasons to be positive. Dollar bears and bulls fight out their differences in opinion in the forex market just as traders in other currencies do – by shorting or going long.

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