Its trading behavior is characterized by selling first and then buying. In fact, it is a bit like the credit transaction model in business. This model can profit in the wave band of falling prices, that is, borrowing goods at a high level and selling them, and then buying and returning them after falling.
For example, the price of gold and silver will fall in the future. When the current price is high, borrow silver (the actual transaction is to buy a put contract) and sell it, then buy it when the price falls to a certain extent and return it to the seller at the current price. The difference is the profit.
The advantage of shorting is to make a guarantee for the plunge. When the forward contracts signed by short investors expire, the funds of short sellers must return, which also gives a buffer to the market. "Short selling is a gold and silver investment term and an operation mode of the stock and futures markets. And "doing more" is the opposite. Theoretically, it is to borrow goods to sell first and then buy them back.
Short selling refers to selling gold and silver at the current price when the market is expected to fall in the future, and buying it after the market falls to obtain the difference profit.
Its trading behavior is characterized by selling first and then buying. In fact, it is a bit like the credit transaction model in business. This model can profit in the wave band of falling prices, that is, borrowing goods at a high level and selling them, and then buying and returning them after falling.
For example, the price of gold and silver will fall in the future. When the current price is high, borrow silver (the actual transaction is to buy a put contract) and sell it, then buy it when the price falls to a certain extent and return it to the seller at the current price. The difference is the profit.
The advantage of shorting is to make a guarantee for the plunge. When the forward contracts signed by short investors expire, the funds of short sellers must return, which also gives a buffer to the market.