Explanation: Neither the buyer nor the seller has goods or currency in and out, which means that the price difference between the expired goods and currency in and out settles the profit and loss.
Short selling is an investment term of stock and futures spot and an operation mode of spot and futures market. It is the antonym of "do more". Theoretically, it is to borrow goods to sell first and then buy them back. Short selling refers to selling the spot 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, if a spot product is expected to fall in the future, borrow and sell it when the current price is high (the actual transaction is to buy a put contract), 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.
Extension of related knowledge points:
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. Therefore, investors are required to recognize the general direction of future trends.
Second, short should grasp the rhythm of market operation, sell when the price rebounds and buy when the 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 the best use of the price difference opportunity created by the wide fluctuation of the market to obtain profits.
In this line of work, beginners must learn to analyze trends. This investment is nothing but buying and selling. People who know nothing have a 50% chance of getting it right. Investment is not gambling. If you are gambling, you will definitely lose money in the end, so investing is a long-term financial management process. What we can do is to increase the probability of doing right as much as possible and maximize profits. Then it involves an accurate judgment and grasp of the market.
There are many index fluctuations in the market. Many people ask me what index is the most useful. In fact, every index is useful, inventable, widely circulated and very classic. So the key is what index suits you. Here is my personal habit of watching movies.
First of all, talk about the main map indicators. My personal habit is to look at the Bollinger Band, which has three lines, the upper rail, the lower rail and the middle rail. Through three lines, an upward channel, a downward channel and a volatile market are formed. Secondly, I am used to watching macd, and I judge the kinetic energy of ups and downs through the dead fork of macd and the heavy volume attached to axis 0. Then there are some shapes to help analyze, such as head and shoulder bottom, head and shoulder top, M shape, W shape and so on. In addition, I personally suggest not to look at too many indicators, there will be contradictions. Hand-only, I hope it will help you and be adopted. thank you