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.
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. Shorting is the opposite of doing long. Theoretically, it is to borrow goods to sell first and then buy them back.
Generally, the regular short-selling market has a platform for third-party brokers to borrow goods. Generally speaking, it is similar to a credit transaction. 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. So buying is still low, selling is still high, but the operating procedures are reversed.
Common functions of shorting include speculation, financing and hedging. Speculation refers to the expectation of future market decline, and then sell high and buy low to obtain the profit difference. Financing means shorting in the bond market and returning it in the future, which can be used as a way to borrow money. Hedging means that when the risk of assets in the hands of a trader is high, he can reduce his risk exposure by shorting risky assets.
Short selling is an investment term such as stock futures: for example, when you expect a stock to fall in the future, sell your stock when the current price is high, and then buy it when the stock price falls to a certain extent, so the difference is your profit. It is characterized by the trading behavior of selling first and then buying.
Short selling is a way of operation in the stock and futures markets. It is pointed out that short selling and long selling are opposite. Theoretically, it is to sell the goods first and then buy them back. Generally, the regular short-selling market has a neutral warehouse to provide a platform for borrowing goods.