Short-selling institutions refer to a way of operating financial assets. Short selling is to borrow the underlying assets first, then sell them to get cash, and after a period of time, pay cash to buy the underlying assets and return them. The common functions of shorting are speculation, financing and hedging.

Among them, short-selling speculation means that if the market is expected to fall in the future, it will sell high and buy low, and sell the borrowed stocks at the current price, and then buy them back after the market falls to obtain the difference profit. Its trading behavior is characterized by selling first and then buying.

The profit model of short-selling institutions is mainly to control the market, buy and sell assets, and earn the asset price difference in the transaction process by selling high and buying low.

Extended data:

The main points that should be paid attention to when implementing short selling are:

First, investors are required to have the ability to judge the overall trend of the market.

Because shorting is only applicable when the market is in a downward channel, at other times, such as when the market is in a horizontal consolidation stage or a bull market stage, this operation skill cannot be adopted.

Second, short should grasp the rhythm of stock price operation, sell when the stock price rebounds and buy when the stock price plummets.

On the way down in a weak market, there will often be a short-term rebound and a diving plunge. Investors should make full use of this irrational change opportunity in the market and make maximum use of the price difference opportunity created by the wide fluctuation of stock prices to obtain profits.

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