Short selling is an investment term and a way of operating financial assets. Contrary to bulls, bears borrow the underlying assets first, then sell them to get cash. After a period of time, they spend cash to buy the underlying assets and return them.

Short selling is a common operation mode in stock futures market. It is expected that the stock futures market will have a downward trend. Operators will sell their chips at the market price, and then buy them after the stock futures fall, earning the middle price difference.

Extended data

Generally speaking, if investors want to sell securities short, they need to arrange to borrow securities for settlement. Investors need to deposit enough margin as collateral, pay interest to lenders, and pay dividends to lenders when they receive interest. Lenders who lend shares will lose their voting rights.

In the past, a large number of shares were lent in the process of privatization, and short sellers sent people to control the voting of shareholders after privatization, which led to the failure of privatization and the great losses of the original shareholders. Therefore, many privatized companies will advise shareholders to take back the lent shares.

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