Stock shorts refer to investors who are bearish on the current market. 1. Shorts and longs are relative. Investors and stock traders believe that although the stock price is relatively high during the current period, they are not optimistic about the prospects of the stock market and expect the stock price to fall. So the stock is sold, hoping to buy it back or make up for it after the stock price drops, so as to obtain the difference in income. Investors who have no physical objects in their hands after selling and before buying back or making up the money are called short positions.

2. Short sellers are investors and stock traders who believe that the current stock price is high, are optimistic about the prospects of the stock market, and expect that the stock price will fall, so they sell the stock and take advantage of the high price. This trading method of selling first and then buying to earn the price difference is called a short position. People usually refer to the stock market where the stock price shows a long-term downward trend as a short market. The characteristics of the stock price changes in the short market are a series of big drops and small rises. Stock price changes are determined by the balance of power between bulls and bears. Bulls will predict a rise in price and make buying decisions. Short sellers will sell their stocks because they predict prices will fall. Like any other trade, a deal is made when longs and shorts agree on a price.

: 1. The formation of stock shorts

Stock shorts have existed for a long time, because stock shorts represent the main bearish force in the market. They may change from long to short due to the technical deterioration of the individual stock itself, or they may change from long to short due to the continuous rise of the individual stock. Therefore, we still have to determine which type of funds change the short position of the stock based on the market. The environment determines.

Of course, if there are no short positions in the market, then individual stocks will show a trend of shrinking and rising by the daily limit, and will continue to rise by the daily limit.

2. What are the characteristics of short stocks?

1. The market is generally optimistic, the popularity is boiling, and investors are rushing to buy stocks, which is a sign that the short market is coming.

2. When bad news comes out, the stock price rises instead of falling.

3. Unfavorable news in the market continues to come out, and the market is in a state of collapse, with stocks dropping to the limit one after another.