Long position is a speculative way in futures trading. Speculators estimate securities, commodities, etc. If the price tends to rise, buy in advance, and then try to sell after the price rises, in order to obtain the difference benefit. This kind of speculation is based on buying first and then selling, and speculators have more securities or commodities to sell, so they are called "bulls". As opposed to a bear.

Bears are investors who think that although the current stock price is high, they are pessimistic about the stock market prospect and expect the stock price to fall, so they sell their stocks at a high price. This trading method of selling before buying and earning the difference from it is called short position.

2. Different characteristics

People usually refer to the stock market with a long-term downward trend as a short market, and the changes of stock prices in the short market are characterized by a series of sharp declines and small increases.

Small-cap and medium-long-term stocks started to rise first, and new highs kept appearing. News that is not conducive to the stock market frequently comes out, but when the stock price does not move, it is time for bulls to buy. When the news of Lido was published in newspapers and magazines, the share price rose.

3. Different influences

For small and medium-sized investors, the introduction of short-selling mechanisms such as stock index futures under current conditions can only mean an increase in risk. Short selling mechanism is a game of the strong. As a vulnerable group in the stock market, it is extremely vulnerable for small and medium-sized investors to participate in this dangerous game without the protection of laws and systems.

Bulls represent an actual trading direction, not a specific group of people, not many people buy bulls, but many forces are greater than the empty side. Multi-index can only play a certain reference role for investors, and cannot be used as a decisive factor in investment. In addition, the long-short trend needs a period of time to change, so it generally lags behind the actual trend of stocks.

Baidu encyclopedia-duotou

Baidu encyclopedia-short position