BRVX Glossary · Bear market · Updated September 25, 2026

A bear market is a prolonged decline in prices, commonly defined for stock indexes as a fall of 20% or more from a recent high. It comes with pessimism, falling volumes on rallies and investors selling into strength rather than buying dips.

On this page
  1. Correction or bear market
  2. Trading a falling market
  3. On BRVX
  4. Questions about Bear market

Correction or bear market

A drop of 10% from a high is usually called a correction; 20% or more is a bear market. Bear markets often include sharp bear-market rallies of 10% or more that fail to set new highs.

Trading a falling market

Some traders reduce exposure; others short. Shorting has its own risk: a falling market can snap back fast in a short squeeze, and a leveraged short can be liquidated in a rally even if the longer trend is still down.

On BRVX

Every BRVX market can be traded short as easily as long — no borrowing of the asset is needed on a perpetual. Funding on BRVX is charged per side and, per the public API, both longs and shorts pay it every hour, so a short held through a long decline has a running cost.

Questions about Bear market

Why is it called a bear market?

A bear swipes its paws downward — the image for falling prices.

How long do bear markets last?

US stock bear markets have averaged under a year and a half, but some ran for years.

Is it safe to short in a bear market?

No. Rallies inside bear markets are violent, and a leveraged short can be closed out in one of them.

Leverage works both ways: a small move against you can lose you the whole margin.

Bear market: next steps on BRVX

Bear market with leverage: MRVL/USDT allows 5x to 80x; at its 40x default, 1% equals 40% of margin. Set TP / SL before opening.

Read next: Bull market, Short selling and Drawdown.

Leverage works both ways: a small move against you can lose you the whole margin.

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Leverage raises both gains and losses. Start with a size you are comfortable with. Not available to US persons.

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