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Baby Bull and Baby Bear

· 6 min read

3 Steps to Buy Baby Bull

Step 1: Pick a stock that you are bullish on and that you think will rise in the future. For example, if you are optimistic about Tesla, you can go to the Tesla stock page and click the "Buy Baby Bull" button to trade Baby Bulls on a new page.

Step 2: Pick a price you think the stock will rise above. For example:

If you think Tesla will rise above 2350, you can choose the Tesla Baby Bulls whose over price is 2350; or the Tesla Baby Bulls whose profit point is around 2350.

Step 3: Choose the expiration day before which you think the stock will rise above the expected price.

Tap the " Buy " button and you are all set!

3 Steps to Buy Baby Bear

Step 1: Pick a stock that you are bearish on and that you think will fall in the future. For example, if you think Apple's stock price will fall, you can go to the Apple stock page and click the "Buy Baby Bear" button to trade Baby Bears on the new page.

Step 2: Choose the price you think the stock will fall below. For example:

If you think Apple will fall below 175, then you can pick an Apple Baby Bear whose price is "Below 175" or the Apple Baby Bear whose profit point is around 175.

Step 3: Choose the expiration day before which you think the stock will fall below the expected price. For example:

If you think Apple stock will fall to 175 on 03/09, then you can buy an Apple below 175 Baby Bear that expires on 03/09.

Tap the " Buy " button and you are all set!

Must-Know Information Before You Buy Baby Bull/ Baby Bear

1. You May Sell Your Baby Bulls/Baby Bears Before Expiration.

If you get a large gain that meets your expectations, it could be the best time to sell immediately to lock in the profits. But if the stock price doesn't go as expected, selling early is also the best way to cut losses.

2. What Should I Do if the Order is Not Filled?

In most cases, orders are filled as soon as the market opens. However, occasionally in the case of severe market fluctuations, orders may not be filled after the market opens. At this point, you just need to cancel the old order and place a new one.

3. What Happens When Baby Bulls/Baby Bears Expire?

Baby Bulls Expire:

When expired, if the stock has risen above the specified over price of Baby Bull, Baby Bull will help you buy the corresponding number of stocks at the over price of Baby Bull, and your profit will be the difference between the latest price of the new stock position you have and the over price that you have bought.

However, if you have no cash or insufficient margin to buy Baby Bull stocks, then RockFlow will automatically sell the Baby Bull for you 2 hours before the expiration.

If the stock has not risen above the specified over price of the Baby Bull, the Baby Bull will automatically expire and disappear.

Baby Bears Expire:

When expired, if the stock falls below the specified below price of Bear Bear, Bear Bear will help you sell or sell short the corresponding number of stocks at the below price, and your profit is the difference between the selling price and the latest price of the stock.

However, if you have no stock to sell or your account is not a margin account and cannot sell short, then RockFlow will automatically sell the Baby Bear for you 2 hours before expiration.

If the stock does not fall below the specified below price of the Baby Bear, the Baby Bear will automatically expire and disappear.

4. What is Rock Selected?

Rock Selected is an innovative listing of Baby Bulls/Baby Bears that are most in line with the financial theory and trading practice experience.

Veteran players often trade Baby Bull/Baby Bear based on many complicated indicators in addition to leverage and expiration day. But the analysis of these indicators is usually convoluted and difficult for many ordinary investors to understand.

Therefore, we have specially launched the Rock Selected feature, among many complex and incomprehensible financial indicators, to sift out for you the Baby Bull/Baby Bear that is most in line with financial theoretical indicators and trading practical experience, so that you don’t have to bother to struggle with those complexities. You can easily pick your favorite Baby Bull/Baby Bear from the Rock Selected.

5. Risk Disclosure: Baby Bull/Baby Bear

Heads-up: As a financial trading product, when helping you make more money, the Baby Bull/Baby Bear could also be risky.

The stock price rises or falls as expected, and the Baby Bull/Baby Bear do bring huge gains, but if the movement of the stock price doesn't meet expectations, the Baby Bull/Baby Bear will fall more sharply than ordinary stocks move.

You may need to sell Baby Bull/Baby Bear before expiration and stop the loss.

If the stock price has not risen above or fallen below the specified price of Baby Bull or Baby Bear at expiration, then your loss is the principal you bought Baby Bull/Baby Bear.

Here's an important notice from RockFlow: every user should make appropriate and rational investment decisions and trade Baby Bull/Baby Bear within the risk range you can bear.

6. The Rationale Behind Baby Bull/Baby Bear

The principle of Baby Bull and Baby Bear is stock options trading.

Due to the high costs of learning and entry, options trading has long been difficult to be popularized, even though it is a great financial derivative with many advantages. The analysis process and order placement are also very complicated.

Therefore, to resolve this, RockFlow innovates Baby Bull/Baby Bear, which has comprehensively optimized and upgraded the options trading, so that new investors who do not understand options can easily trade it and enjoy the fun of investing it.

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