After the above-mentioned series of operations, the intermediate price difference earned is the income of shorting stocks. Among them, margin financing and securities lending business refers to the business activities of securities companies that lend funds to customers to buy listed securities or lend listed securities for them to sell, and collect collateral. However, allowing short selling of stocks is a double-edged sword. In this case, the value of stocks will be fully displayed, but the stock price will fluctuate violently because of short selling.
In the A-share market, investors can short through margin accounts, that is, investors think that a stock will fall later, so they can borrow some from securities companies first, and then sell them to earn the difference.
For example, Xiao Ming predicts that a stock will fall by 50% in one month, and the current price is 10 yuan. Xiao first borrows 1000 shares from a securities company and then sells them at 1000 yuan. After selling the shares, he will get 1000 yuan. When the stock falls to 5 yuan, Xiaoming will buy 1000 yuan.
It should be noted that not all investors can open the authority of margin financing and securities lending, and there are certain requirements for the amount of funds of investors: opening margin financing and securities lending requires investors to have an average daily asset of 500,000 in the first 20 trading days, and investors can only short the stocks within the margin financing and securities lending range.
One: the significance of shorting
The short-selling mechanism is a game of the strong, and the short-selling mechanism is very risky for the bookmakers. But the lure of its huge profits is enormous. Under the temptation of profiteering and poor supervision, they will do whatever it takes to spread more false information, do business more frequently and manipulate prices together.
In China, due to a series of problems such as the size of the stock market design, the transparency of the stock market is low, the hidden short-selling risk is huge, and it is difficult to do more.
There is a subtle game between tradable shareholders and non-tradable shareholders. At present, the short-selling stock market can't be fully promoted in China for the time being until the laws and regulations such as non-size and restricted shares are perfected, and a delicate balance can only be achieved between them through securities lending.
Two: what is the content of shorting?
Short selling is an investment term such as stock futures: for example, when you expect a stock to fall in the future, sell your stock when the current price is high, and then buy it when the stock price falls to a certain extent, so the difference is your profit. It is characterized by the trading behavior of selling first and then buying.
Short selling is a way of operation in the stock and futures markets. It is pointed out that short selling and long selling are opposite. Theoretically, it is to sell the goods first and then buy them back. Generally, the regular short-selling market has a neutral warehouse to provide a platform for borrowing goods.
Three: the impact of shorting
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.