When trading stocks, most investors can only clear or lighten their positions when they see the stock market fall. In fact, you can make money by shorting when the market is bad, so do you know how to make money by shorting the stock market?

How to make money by shorting the stock market?

In China, there are only three formal short selling methods in the stock market, namely, margin trading, stock index futures and stock index options.

1 The first is to open the margin financing and securities lending business of brokers and use "margin financing and securities lending" to short stocks. Securities lending is to borrow stocks to short. If investors expect stocks to fall, they can borrow stocks from brokers, then sell them, and then buy them back to brokers after the stocks fall, thus gaining income.

The second is to short stocks through stock index futures. If investors open stock index futures accounts, they can directly sell and open positions, and when the stock index falls, they can get the benefits brought by the stock index decline.

The third is to short through stock index options. On the premise of opening a stock index option account, investors can buy put options or sell call options, and when the stock index falls, they can get the benefits brought by the stock index decline.

The above three ways of shorting all need to meet certain thresholds. The threshold of margin financing and securities lending is the lowest, but it also needs 500 thousand funds and half a year's experience in stock trading. Stock index futures and stock index options have higher threshold for opening accounts.