Market Downturn

A market downturn is a period of declining prices across a market or asset class. These periods present both risks and opportunities for derivative traders.

Many strategies are specifically designed to benefit during these times, such as buying puts or selling calls. Being prepared for a downturn is vital for any comprehensive trading plan.

It is a natural part of the market cycle.

Market Sensitivity
Risk Exposure
Market Cycle
Spot Market
Market Exposure