What is the difference between Bullish and Bearish ?

To differentiate between bullish and bearish market first of all we need to know what is bearish and bullish means?

These two terms are market conditions under which securities, options and contracts etc are traded. Bullish means the price of the stock increases or assumes to be increases in near future. And the bearish means the price of stock or value of security is decreases or assumes to be decreases in near future.

The investors act differently in bullish and bearish market to earn profit from the available market condition. The open interest is also used to analyse the market conditions are bearish or bullish. Open interest is the number of derivatives contracts are not settled in the end of a trading day.

Let’s find out the difference between Bullish and Bearish market conditions :-

S.No.	Point of difference	Bullish	Bearish
1	What is the meaning of bullish and bearish?	The asset value or stock prices assume to be increases in future.	The asset value or security value deceases in near future.
2	What actions taken by investors in different conditions of a market?	Investors buy the stocks immediately. So, that they can gain in future by rise in prices of stocks.	Investors sell the stocks they own immediately to protect from the losses they incurred in future by decreasing the price of a stocks
3	Speculation purpose	To gain from the market investors create bullish condition or situation by purchasing stocks from market. It will lead to rise in stock prices and later they sold it at high price.	To gain from the market investors create bearish condition or situation by selling stocks in market. It will lead to decline in stock prices and later they purchase it at low price.
4	Who can create bullish and bearish market conditions?	Big investors, financial institution , big investment company can buy the stock to create the bullish market	Big investment company or financial institution can sell the stock to create the bearish market condition.
5	How to earn profit by investors in these two market conditions?	The difference between selling price of stock in future and currently the purchase price of stock is the profit for investors.	The difference between the current selling price and the future purchase price is the profit for investors.
6	When investors’ position is long and short in these two market conditions?	In bullish market condition the investors prefer long position in market which means they hold the stocks for long time for earning high profit.	In bearish market condition the investors prefer short position in market which means they hold the stocks for short time for earning high profit.
7	How open interest help to analyse the market conditions?	When open interest is increases and prices are also increases. It means new buyers entering in a market it indicate bullish market	When open interest is increases but the prices are decreases it means new buyers entering in a market but there are some investors who are selling the stocks.  It indicates the bearish market.