Buying more refers to rising when opening a position, also known as buying more. When the market goes up, there will be a profit, and vice versa.
Short selling refers to falling when opening a position, also known as shorting. If the market falls, there will be profits, and vice versa.
Extended data:
Futures trading is an advanced trading method based on spot trading and forward contract trading. In order to transfer the risk of market price fluctuation, it refers to the form of buying and selling futures contracts in an open competition on commodity exchanges through brokers.
Futures investors should have good psychological quality and risk-taking ability, strong will, strong self-discipline, be able to handle their trading business calmly and not be emotional. Futures investors should be able to calmly and calmly analyze and observe the rapidly changing price market and make reasonable decisions.
One reason why futures trading is attractive to investors is the leverage of futures trading, that is, controlling the overall value of futures contracts with relatively little funds, that is, trading with 5% to 10% of funds 100%. However, futures investors should fully realize that high returns are behind high risks. Therefore, people who step into the futures market should have a sense of taking risks and be prepared for possible losses. In addition, because the rules and practices of futures trading and securities trading have many similarities and differences with general spot trading, people entering the futures market should also understand and master some necessary futures trading knowledge.
Two-way trading, that is, futures traders can buy futures contracts as the beginning of futures trading (called buying positions) or sell futures contracts as the beginning of trading (called selling positions), commonly known as "short selling". There is also a hedging mechanism associated with the characteristics of two-way trading. In most futures trading, when the contract expires, it is not fulfilled by physical delivery, but by trading in the opposite direction to the opening direction. Specifically, after buying a warehouse, you can cancel the performance responsibility by selling the same contract, and after selling a warehouse, you can cancel the performance responsibility by buying the same contract.
The characteristics of two-way trading and hedging mechanism of futures trading attract a large number of futures speculators to participate in trading, because speculators have double profit opportunities in the futures market. When futures prices rise, they can buy low and sell high to make a profit. When prices fall, they can make profits by selling high and buying low, and speculators can avoid the trouble of physical delivery through hedging mechanism. The participation of speculators has greatly increased the liquidity of the futures market.