Short selling mechanism, also known as short selling. Suppose there are 100 A shares (this is called spot), and the market price is 10 yuan. Now I borrow this 100 share, sell it at the price of 10 yuan, and then buy back 100 A shares when the share price falls to 9 yuan.
Earned a difference of 100 yuan (100 *10-100 * 9). The stock in my hand is still 100 shares, which has not changed, but I earned 100 yuan, which I got by shorting stocks.
This is the short selling mechanism. In practice, I need to pay a deposit in advance as a guarantee. When the stock price goes up, I have to add a margin. Because the stock price goes up to 1 1 yuan, I will spend 1 100 yuan to buy back 100 shares and return them to you (I lost 100 yuan).
Extended data:
The main points that should be paid attention to when implementing short selling are:
First, investors are required to have the ability to judge the overall trend of the market.
Because shorting is only applicable to the market in the downward trend channel, this operation skill can not be adopted in other periods, such as the market in the horizontal consolidation stage or bull market stage. Therefore, investors are required to recognize the general direction of future trends.
Second, short should grasp the rhythm of stock price operation, sell when the stock price rebounds and buy when the stock price plummets.
On the way down in a weak market, there will often be a short-term rebound and a diving plunge. Investors should make full use of this irrational change opportunity in the market and make maximum use of the price difference opportunity created by the wide fluctuation of stock prices to obtain profits.
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