How to take a bearish position
To take a bearish position, many traders will short sell. Short-selling is a way of trading that returns a profit if an asset drops in price.
Traditionally, if you were short-selling stock, for example, you would borrow some stock from your broker, and immediately sell it at the current market price. Once the stock has dropped in price, you would then buy it and return it to your broker, keeping the difference in price as profit. However, derivatives – such as CFDs – have made the practice of short-selling much more accessible, as they can be used to buy and sell a wide variety of markets.
There are many other ways to attempt to profit from falling markets. For example, inverse ETFs are designed to reverse any price movement in their benchmark index.