1. Going long means that it is estimated that the situation will rise in the future, so buy contracts and sell them at sky-high prices after the future price rises. Make a net profit. Shorting means that the trend is expected to fall, so sell the contract and buy the contract at a low price after the future price falls. Make a net profit.
2. As far as hedging is concerned, long means avoiding or hedging the risk of product cost expansion brought about by future price increases, and locking in costs in advance. Short selling refers to avoiding or hedging the risk of profit reduction caused by future price decline, and locking in profits early.
Extended data
Short position, under some special circumstances, the customer's rights and interests in the investor's margin account are negative. When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading.
If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse. The bigger the lever, the closer it is to the explosion, so be careful when adding any lever.
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