How to make money by shorting stocks?
Judging from the existing investment business and trading varieties in China, there are three ways to short stocks.
1 Short individual stocks through securities lending business. If the stock price falls, investors can borrow shares and then sell them, and then buy back bonds to gain short-selling gains.
2 Short the stock index through stock index futures. Stock index futures can directly open short positions, and after the stock index price falls, they can close their positions to obtain income. At present, there are three major stock index futures in China: SSE 50 stock index futures, CSI 300 stock index futures and CSI 500 stock index futures.
3 short the stock index through stock index options. By buying put options or selling call options, you can earn the benefits of falling stock prices. Stock index options listed in China include SSE 50ETF options, CSI 300ETF options and CSI 300 stock index options.
In fact, these three short-selling methods have a high threshold, and the capital requirement when opening an account is 500,000. The latter two also have certain requirements for the professionalism of investors.