For speculators, naked short selling is the real short selling. According to the definition in the book, short selling means borrowing an underlying asset → selling it at a high level → buying it back when it falls → returning it → earning the difference. But this program is very troublesome, such as who to borrow it from? Will the other party lend it to you? How high is the interest offered by the other party? How long do you want to borrow it and how long will it take to complete the short selling procedure? Obviously, shorting is much more complicated than going long. Naked short selling does not need to borrow any basic assets in advance. Just click the "short selling" button on your trading software, and the program will complete the transaction in one second, which is as convenient and quick as buying more. Only in this way can we truly be short-term, repeat in one day, short on rallies, buy more on dips, and attack many times.

At present, "naked short selling" can't be done in the stock market all over the world, because the object of the stock market is entity enterprises. If you can do naked short selling, you may artificially and intentionally spread negative news and short a listed company, which will eventually lead to the depreciation of the company's assets because everyone sells stocks, which will lead to debt crisis and even bankruptcy liquidation. China lacks a perfect stock short selling mechanism. The United States can short, but it cannot do "naked short selling". It must first borrow the basic assets and pay a certain amount of guarantee capital.

At present, only the foreign exchange market and futures market (including China) can do naked short selling, which can be said to be a real speculator's paradise.