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If you know in advance that a futures (stock) will be reduced in price, how can you use this price reduction to make a profit?
The relationship between supply and demand is the basis for determining price changes.

The novel also fully reflects the commercial war between the opposing sides based on the relationship between supply and demand. Regardless of the needs of the people, the Liu family used the method of hoarding and selling salt at high prices; When Lee Kwang Soo saw that "loyalist recovered artesian well and salt resumed production", the sky-high price of salt would fall.

Why do they say that the price of salt can be lower than this level, and they will make huge profits. On the contrary, they will lose their pants. "

This is the group's evaluation of competitor Li Group. Just do the math.

Suppose Li Group currently sells 1000 stone salt to the group at the price of 3 stones, and gets 3,000 stones.

After February, the price dropped to 2 rounds 1 stone, and Li repurchased 1 000 stone for 2000 rounds. 1000 stone price difference is not only the profit of Li Group, but also the loss of Liu Lei. On the other hand, if the price rises instead of falling, Li will "even lose his pants."

But it should not be completely accurate to say that this is the "original futures".

If you know in advance that a futures (stock) will be reduced in price, how can you use this price reduction to make a profit?

That is to expect the change of a commodity price trend. When the price falls, you can make use of the trading tools in the existing market to make profits. It is often called "shorting". The simple point is to sell first, and then buy back the "liquidation" after the price falls.

There are three commodity futures markets in Shanghai, Dalian and Zhengzhou.

Stocks can be sold short through securities lending or index futures.