What does two-way stock trading mean?
Two-way trading of stocks, also known as short selling. Two-way trading is called margin trading in China, and there are financing methods, but the magnification is only 2 times, and the personal holding funds should be above 50W.
For example, if beef is 50 yuan a catty, because some investors get some news, there will be a large number of foreign beef listed tomorrow, which will lead to a sharp drop in beef prices, then investors will borrow 10 catty of beef from the butcher and resell it, so I will earn 500 yuan. When the price of beef really drops to 30 yuan a catty tomorrow, I will buy it back for 300 yuan and return it to the butcher. In that case, I'll make 200 yuan. Here you have to understand the principle of shorting.
In fact, if you think something is falling, borrow it and sell it at the current high price. When this thing really drops to a low level, we will buy it back at a low price and return it. This is called emptiness. At present, China A-share market has no choice but to do more, so everyone simply thinks that the capital market can only make money if it goes up. Because there is no short-selling mechanism in the A-share market, profit is not two-way.
What are the benefits of two-way stock trading?
Doing so can give investors more choices. When you notice that a stock has a downward trend, if you don't own the stock, you can sell it while the price is still high and set the selling contract price first. Wait until the stock falls, and then actually buy it from someone else at a lower price. This is also profitable.
Compared with single transaction, two-way transaction can not only buy first and then sell (long position), but also sell first and then buy (short position). Under such stock operation, when the price falls, investors can increase the possibility of profit by shorting. This means that investors have a chance to make money whether the stock price goes up or down.
The specific meaning of two-way stock trading can be found in the above article. At the same time, two-way stock trading has obvious advantages, which investors can understand. China's A-shares can't do this, but they can borrow and sell securities.