Short-selling futures is the behavior that investors and stock traders think that although the current stock price is high, they are not optimistic about the stock market prospect and expect the stock price to fall, so they sell the stock and buy it when the stock price falls to a certain price, so as to obtain the difference income.

Moreover, when the stock price has risen to the highest point and is about to fall, or when the stock has begun to fall, investors who think it will continue to fall will sell it at a high price. This trading method of selling before buying and earning the difference from it is called short position.

The significance of futures shorts

The change of stock price is determined by the comparison of the strength of bulls and bears. The bulls will predict the price increase and make a purchase decision. Bears will sell their shares because they predict that prices will fall. Like other transactions, when the bulls and bears agree on the price, the transaction is reached.

As for the method of shorting, we often say that it is above the stock futures market, mainly because investors in the corresponding market predict that the stock futures market will have a downward trend in the future, and then sell the subject matter in their hands according to the market conditions, and then wait for the price of the subject matter to fall to a certain extent before buying. From these trading steps, investors get a certain income, that is, the intermediate price difference. To sum up these contents, their functions are speculation, financing, hedging and so on.