In the stock market, the understanding of it generally refers to market investors, after making judgments on the whole stock market or some interested stocks because of their future trends. The following is Bian Xiao's understanding of the short-selling mechanism, which is for reference only and I hope it will be helpful to everyone.
How to understand short selling mechanism
1. When investors are short, that is, when they judge that the price will fall in the future, they should pay a deposit of 10% in advance, borrow goods from a third party and sell them, and then repurchase them from the third party when they close their positions to recover the deposit. In other words, you can sell it before you buy it.
2. The short selling mechanism is not perfect, and it is at an obvious disadvantage compared with the long selling mechanism in China market.
3. The risk operation of short selling mechanism is mainly carried out by some experienced investors, and it is better for small and medium investors in the market not to participate as much as possible.
The above points are the characteristics of its short-selling mechanism, which can also be said to be his shortcomings, but in fact it still has many functions in the market. Here are a few main introductions: First, the first point is that it can help investors in the market to actively avoid risks and increase market liquidity while avoiding risks. Some people think that the existence of this mechanism makes the stock market and futures market the same to some extent; Second, because of the coordinated development of short-selling and long-selling mechanisms in the stock market, it can operate steadily in the stock market; Third, on the other hand, it can improve the financing efficiency of China stock market and guide the rational investment of the market; This paper mainly introduces several functions of this mechanism, so it is necessary to understand that credit trading and stock index futures trading are introduced in the market to strengthen the short-selling mechanism, and the final result is to meet the needs of market development and make it have basic conditions.
At present, our short-selling mechanism in the domestic market is mainly futures trading, and margin financing and securities lending are also very common, but the scale of margin financing and securities lending is still very small, and there are still few stock varieties that can be received.
What are the ways to short stocks?
1, securities lending
The so-called securities lending means borrowing securities. Borrow it from who? Securities companies run by investors. Can I sell it naked directly? The current policy does not allow it. How to operate specifically? For the sake of simplicity, transaction fees and other expenses are not considered.
For example, China CSR or CNR some time ago. Because the stock price is surprisingly high, it has deviated far from its value. Investors think the stock price will fall. At this time, investors can borrow China South Locomotive from your broker at the share price of 39 yuan at that time and sell it. Suppose it is 654.38+00,000 shares, and you have 390,000 more cash.
The next market is like you are a director, and your share price has plummeted for two consecutive trading days. At such a time, if you think the stock price has fallen to a relatively reasonable level. 65.438 million shares of China South Locomotive can be repurchased. If the price when you buy back China South Locomotive is 32 yuan, it will cost you 320,000 yuan.
Step 2 choose
The right to choose is a right. But the exercise of this right is for investors to choose whether to exercise it at some time in the future according to its value. Because investors are inevitably divided in their opinions, there are bulls and bears, so options can be divided into call options (bullish) and put options (bearish).
Give an example to illustrate these two options. Suppose that the price of an egg is now 5 yuan, which is divided into two situations:
(1) If investor A thinks that the egg will rise after 1 month, then its value is 6 yuan, while investor B who holds the egg thinks that it is not worth so much money. Therefore, the two agreed that Party A should pay 0.5 yuan deposit to Party B and have the right to buy the eggs held by Party B at the price of 5 yuan in the future. In this way, they reached an egg call option.
(2) If investor A thinks that the value of eggs will be in 4 yuan at most after one month, and investor B who holds eggs thinks that eggs will not only be in 5 yuan, such as 5.5 yuan, but also wants to continue collecting eggs for profit. So, they started dating again: A said, I will sell you eggs at the price of 4 yuan in a month, and you must buy them. B said, ok. Party A also paid 0.5 yuan's deposit to Party B. For A, this means buying put options. Release, that is, release.
3. Stock index futures
Futures, not "goods", are contracts that can be traded by Shanghai Electric Company, which are linked to specific subject matter. The stock index futures mentioned here are contracts linked to the stock index.
The biggest feature of stock index futures is that it can be traded at T+0, and there is no limit on the number of times of the day. Suppose investors think that the stock market will fall that day, and they can profit from the falling market by selling stock index futures contracts (a bit like the above-mentioned securities lending).
Another feature of stock index futures is that it can be leveraged, and when investors make the right trading behavior, it can amplify the income. Considering that the margin ratio generally required by futures companies is 15%, this means that the leverage ratio is close to 7 times.
At present, there are three kinds of futures trading products launched by China Financial Futures Exchange, namely Shanghai and Shenzhen 300 stock index futures, Shanghai and Shenzhen 50 stock index futures and CSI 500 stock index futures.
Five common methods of shorting US stocks
1, directly short the stock.
Shorting stocks directly through brokers, such as Yahoo's stock YHOO, first sell the stocks borrowed from brokers, and then buy them back after Yahoo's stock falls back, and return them to brokers to earn the difference in the middle.
P.S. Not every U.S. stock broker provides short selling function. Only powerful and liquid brokers can let you borrow coupons at critical moments. Others either need to apply for short selling function, or they can't borrow coupons. Tiger Securities is recommended to speculate in US stocks in China. It is very simple to short US stocks with Tiger Securities APP. Just click the "sell" button at the bottom and wait for the opportunity before "buy" to complete a short selling operation.
2. Short by buying and selling options corresponding to stocks.
Many companies in the American stock market have corresponding options, such as one month, two months, one-year maturity and so on. There are also differences in prices, including long (bullish) and short (bearish) options. If you have stocks, you can sell options to others yourself (similar to "issuing" options yourself). This operation is called "writing".
You can directly buy short options (buy put options) and need less funds; Or you can "write" the long option to others after buying the stock, whether the stock goes up or down or not, as long as you "write" the long option with the target above the current price, you can make money in nine cases out of ten.
3. Buy options corresponding to the index
The Dow Jones index, the Standard & Poor's 500 index and the S&P 100 index in the US stock market also have options. The trading methods of index options and stock options are similar, but individuals can't "write" and can only buy short options (put options) if they want to be short.
4. short the ETF of US stocks
There are also many short ETFs in the US stock market, such as DXD short Dow Jones index, QID short Nasdaq index and SKF short financial services index. If you don't want to take too much risk yourself, you might as well consider buying short ETFs, which are basically operated by experts and have considerable benefits.
5. Through futures trading
Futures trading and stock market are conducted separately. You can also short US stocks through stock index futures, but stock index futures are much less than options, and relatively few investors short US stocks through stock index futures.