Short selling, also known as short selling, short selling (Hong Kong) and short selling (Singapore, Malaysia), is an investment term of stocks and futures, and it is also an operation mode of the stock and futures markets. In contrast to bulls, in theory, it is to borrow first, then sell, then buy and then return. Short selling refers to selling borrowed stocks at the current price in the expectation of future market decline, and then buying and returning them after the market decline in order 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, a stock is expected to fall in the future, borrowed and sold when the current price is high (the actual transaction is to buy a put contract), then bought when the stock price falls to a certain extent and returned to the seller at the current price. The difference is the profit.
Closing position refers to the behavior of futures traders to buy or sell futures contracts with the same variety, quantity and delivery month but in the opposite direction, and close the futures trading. Simply put, it is "buy before selling, buy after selling".