Short selling, also known as short selling, short selling and short selling, is a technical term in the field of stocks and futures. It refers to selling stocks at the current price in anticipation of future market decline, and buying them after the market decline to obtain the profit difference. The following is how to make money by short selling compiled by Bian Xiao, hoping to help everyone.
How to make money by shorting?
The general way for short-selling institutions to make money by shorting stocks is to first inquire about the operating conditions and financial reports of each company, find problems, and then spend a lot of manpower and material resources to investigate the actual situation of the company. After comparing the obtained data with the published data, it is found that there are indeed problems, and a large number of stocks will be borrowed from brokers and changed hands. At this time, listed companies will plummet because of these news, and the stock price will plummet. Short-selling institutions can sell again to earn the difference.
This kind of operation is relatively routine in the actual financial market, because shorting can reduce market volatility and make the stock price tend to be stable. Secondly, it can prevent the stock market from being manipulated maliciously and rising irrationally, because many companies, in order to raise the stock price, do not hesitate to make financial fraud, make profits with unreasonable behavior and harvest investors' leeks. At this time, short-selling institutions will become the protectors of leeks, contribute their meager strength, find problems, short stocks, and promote the stock price to be reasonable. Protect unsuspecting retail investors and prevent them from falling into it.
To sum up, we know that the main ways to make money by short selling are almost the same as those by long stocks. They provide market liquidity and establish a good system for the market.
To sum up, at present, China stock market can only make profits by "doing more" besides dividends. That is, investors buy stocks at a low price, and then sell them at a high price in the process of rising stocks, and the difference in the middle is used as investment income.
What does short-term trading mean?
Short selling means that users borrow assets first, and then investors sell the borrowed assets. After the lent assets fall, users can buy the same amount of assets with less money, and the remaining money is their own profits. Short selling is a common operation mode in the stock futures market, which requires investors to expect a downward trend in the stock futures market.
Users should have this knowledge when investing in stock futures. If they don't have this knowledge, they can't buy and sell stock futures. Futures are traded in t+0, and investors can sell them at any time after buying. There is no time limit, as long as it is profitable, they can sell it.
Stock futures will face greater risks when buying and selling. If the user's judgment is not accurate, there will be losses at this time.
Pay attention to the stock price changes after buying stocks, and usually set the take profit price and stop loss price after buying. When the stock price reaches the take-profit price, it should be sold decisively or in batches. If you reach the stop-loss price, you should also sell it at this time to avoid the loss from expanding.
What do you mean by shorting?
Short selling is simply: if there is no goods, sell them first and then buy them. For example, if you see A shares 10 yuan, it will fall to 8 yuan within a certain period of time, but you don't own A shares. At this time, you can borrow some A shares from A-share holders and sign an agreement to return these borrowed shares to the original holders within a certain period of time. Suppose you borrow 100 A shares at the price of10 yuan. Get 1000 yuan in cash. If the stock really falls to 8 yuan within the specified time, you use 8 yuan to buy 100 A shares, spend money to buy 800 yuan, and return 100 shares to the original holder. The number of shares of the original holder did not change in the end, but you earned 200 yuan cash. At present, there is no short-selling mechanism in China, but the upcoming stock index futures are also short-selling mechanisms. The short-selling mechanism not only refers to the short-selling of stocks, but also includes the short-selling of indexes.