When you first enter the stock market, many words don't know what they mean, which will affect investors' investment decisions, such as going long and shorting. What does this mean? What is the relationship between them? Let's take a look at the detailed introduction.

What do you mean by shorting stocks?

In theory, shorting stocks means borrowing goods to sell and then buying them back. For example, if a stock is expected to fall in the future, sell it when the current price is high, and then buy it when the stock price falls to a certain extent. Such a price difference is profit. This process is called shorting. It is much simpler to do more stocks, that is, to be optimistic about the future trend of a stock and buy it in time to make a profit.

Short and long stocks are actually for the ultimate profit. Short selling is a common operation mode in stock futures market, and its common functions include speculation, financing and hedging. Going long, as opposed to shorting, is an operation mode in the stock and futures markets.

Whether you are long or short, there are great risks. After all, no one can accurately grasp the future trend of a stock. In the process of long or short, if you find that the situation is wrong, contrary to your own prediction, or there is no predicted trend, you must stop the loss in time.

After reading the above introduction, I hope it can help you better understand the short and long positions of stocks. Under normal circumstances, retail investors can't control the trend of a stock, so there is no short selling and long selling, which usually happens to a main force or institution.