Will short selling always be profitable? _ Under what conditions will short selling appear?

Perhaps some newcomers have tried short selling after contacting short selling, and then they can make a profit through this method, but there will be another question in their hearts. Therefore, Bian Xiao deliberately brought a short profit to everyone, and it will explode. I hope you like it.

Will short selling always be profitable?

Shorting has always been profitable and will not lead to short positions. Explosions usually occur in the following situations:

Excessive leverage ratio: If you use high leverage ratio to short, but the market price rises in the opposite direction, the loss may soon exceed your tolerable range, leading to short positions.

Insufficient margin: When you are short, you need to provide enough margin to meet the requirements of the exchange or broker. If your margin funds are not enough to maintain your position or add margin, it may lead to forced liquidation and lead to short positions.

Suspension or price limit: If you are shorting a stock and the stock cannot be traded due to suspension or price limit, you may not be able to close your position in time, which increases the risk of short position.

It is important that investment is risky, especially when trading with leverage. To be unprecedented, we must understand and abide by the relevant risk management principles and ensure that we have enough funds to deal with potential losses. In addition, it is recommended that you communicate with professional investment consultants or brokers to obtain personalized investment advice and risk assessment.

What is an empty position and under what circumstances will it be empty?

Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. When the market changes greatly, most of the gold in the investor's margin account is occupied by the trading margin, and the trading direction is opposite to the market trend. Due to the leverage effect of margin trading, it is easy to break out.

1, frequent heavy positions.

One of the characteristics of investment transactions is high leverage, which can reach hundreds of times. If you choose high leverage, your position is very heavy. Although you may make a lot of money, you may explode in a short time if you are not careful or encounter relatively fluctuating market bands. In this case, the quick success of traders is generally due to light warehouse operation, which can effectively avoid short positions.

2. Stubborn.

Many traders fail to close their positions in time when they are in danger because of their personal character, but they are lucky and know that there are tigers in the mountains. This persistent attitude is stupid in the investment market. Trading is just to make money at HSBC. If it doesn't work this time, it will be a waste of money to wait until next time.

Many investors broke their positions because there was no stop loss. The reasons are psychological barriers and technical factors. Psychological barriers are mainly manifested in fluky psychology. However, investment is not gambling. Luck and luck cannot be with you forever. If you want to make a stable profit, you still have to rely on your real strength. The market has its own operating rules and will not be transferred by anyone's will. Bad trading habits of luck must be eradicated as soon as possible in their own trading behavior. Otherwise, you will be poor in the future.

Stop loss position should be adjusted in combination with its own position and its own operation cycle.

How to learn to read the K-line chart in one minute?

There are three main steps in learning to read the K-line chart. The first step is to distinguish yin and yang, the second step is to know the size, and the third step is to look at the length.

1, distinguish between yin and yang

K-line chart can be divided into negative line and positive line. In China's stock market, the negative line is generally represented by green, and the positive line is represented by red. The negative line indicates that the stock price falls, and the positive line indicates that the stock price rises.

Step 2 know the size

Knowing the size is mainly to know the physical size of the K-line diagram. The two ends of the entity are the opening price and the closing price respectively. When the K-line is the positive line, the upper end is the closing price and the lower end is the opening price, that is, the closing price is greater than the opening price, indicating that the stock price has risen. When the K-line is the negative line, the upper end of the entity is the opening price and the lower end of the entity is the closing price, that is, the opening price is greater than the closing price, indicating that the stock price has fallen.

When the K-line chart is a positive line (that is, red), the larger the entity, the stronger the buyer's power, and the smaller the entity, the smaller the buyer's power. When the K-line chart is negative (that is, green), the larger the entity, the stronger the seller's strength, and the smaller the entity, the weaker the seller's strength.

Step 3 look at the length

Look at the length mainly depends on the length of the shadow line. There are upper and lower shadow lines in the K-line chart, which represent the highest price and the lowest price respectively. The longer the shadow line, the more unfavorable it is for the stock to run in the same direction. For example, the longer the upper shadow line, the worse it is for the stock to go up, and the longer the lower shadow line, the worse it is for the stock to go down.

Difference between spot market and futures market

Simply put, it is to buy and sell physical objects in the spot and futures contracts in the futures market. Therefore, the difference between spot market and futures market is as follows:

1, the transaction mode is different: in short, both the buyer and the seller think that the transaction can be concluded. But the purpose of the futures market is not to get the real thing, but to worry about the future rise or fall of the spot, so hedging or arbitrage can be carried out.

2. trading places is different: the futures trading market is flexible and changeable, which is not affected by the trading time and place, and can be traded at any place. However, futures can only be traded on futures exchanges, and futures trading must be conducted in an open and centralized manner according to law. China Commodity Futures Exchange is owned by Dalian Commodity Futures Exchange and Zhengzhou Commodity Exchange.

3. Different guarantee methods: spot transactions are protected by contract law, but the futures market implements the margin system. If you don't exercise your rights according to the contract at maturity, you will lose the deposit.

How to open an account for speculating futures?

Speculation in futures accounts is actually very simple. Investors only need to open an account in a futures company or futures agency, such as a securities company. At present, futures accounts can be opened online without going to the counter. Investors find the entrance to open an account, prepare bank cards, ID cards and handwritten signature photos, and follow the process.

For example, you can open an account directly on the straight flush software, and investors can open an account directly by downloading the straight flush futures software. If investors can't open an account, there will be a process prompt on the account opening interface, so opening an account is relatively simple, mainly because it is difficult to trade futures after opening an account.

Novices should have certain professional knowledge and simulation experience before speculating futures. If they don't, they can't tell the meaning of the instructions, and it's easy to lose money.

Futures trading mode is T+0, with two-way trading and margin trading. Domestic futures trading hours are Monday to Friday from 9:00- 1 1:00, afternoon 13:30- 15:00, and night trading is 2 1:00- the next day.