Short positions are usually only temporary, because when prices start to rise, few investors will choose to keep the positions they sell. At this time, they will also do the opposite operation, that is, buy money or securities, so that they can even out. The purpose of this is to ensure that they will not suffer huge losses because of rising prices. Therefore, short position is an extremely important strategy for investors who want to gain an advantage in the market.
Although short positions are usually regarded as a way of making profits, they are also related to risks. If the market price does not fall as expected, or the price starts to rise, investors may face serious losses. This is also the reason why investors need to handle short positions cautiously and rationally. Correctly understanding the market trend and formulating a reasonable risk management strategy are the key to avoid the risk of short positions. Only in this way can investors get steady returns when the market trend is not good.