Short selling is a common operation mode in stock futures market. It is expected that the stock futures market will have a downward trend. The operator will sell his chips at the market price, and then buy them after the stock futures fall to earn the middle price difference.
Shorting is the opposite of doing long. Theoretically, it is to borrow goods to sell first and then buy them back. Generally, the regular short-selling market has a platform for third-party brokers to borrow goods. Generally speaking, it is similar to a credit transaction. This model can profit in the wave band of falling prices, that is, borrowing goods at a high level and selling them, and then buying and returning them after falling. So buying is still low, selling is still high, but the operating procedures are reversed.
Here is an example:
At present, the share of a stock is 10 yuan, and the short seller has 1000 yuan in cash. To illustrate the problem, the following example ignores the calculation of the handling fee. Short sellers estimate that the stock will fall recently.
Short sellers borrow 654.38+million shares from securities companies (there is no short selling mechanism in China stock market at present), and then sell them at 654.38+00 yuan per share, so short sellers have 654.38+654.38+000 yuan in their hands. After two days, the stock fell to 8.50 yuan per share, the short seller bought another 6.5438+million shares, the short seller spent 850,000, and the cash in hand was 6.5438+056.5438+000.
Then the short seller will return 6,543,800+shares to the securities company. In this way, a short operation was completed, and the short seller earned 1.5 million in this operation.
Extended data:
The advantages of short selling mechanism are manifold. Banks attach great importance to short-selling reports. Understanding the risk points of enterprise production and operation, capital chain and other aspects through audit investigation is conducive to controlling the loan risk. Short selling has increased the tools for investors to express their views on stock prices and increased the choice of investment strategies.
Shorting is conducive to improving market liquidity and promoting price discovery. Shorting is conducive to balancing unilateral transactions and correcting overvaluation. In a market repeatedly questioned and bombarded by bears, the eliminated bubble basically disappears, and the intrinsic value becomes the most important factor supporting the stock price, and the probability of continuous plunge and stock market plunge is greatly reduced.
Of course, in order to make a profit, some empty parties may also publish false information, which will cause the market to fall irrationally, thus leading to the breeding or spread of rumors. However, this is like boasting about the development prospects of listed companies and other false statements, but the goal and direction are opposite. The side effects of these short selling need to be curbed by strengthening supervision.
But in general, the impact of short-selling mechanism on the market is that the advantages outweigh the disadvantages, and short-selling cannot be restricted because of fear of its side effects.
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