Spot short selling is a speculative behavior, which is often related to financial derivatives such as futures and options. Investors usually make spot short selling at an appropriate time according to their own analysis or market conditions. If the supply of an asset or commodity exceeds the demand in the market, the price will fall, and investors can buy back the asset or commodity in the process of falling and realize the income. Compared with buying transactions, this kind of transaction is easier to get benefits, but the risk will increase accordingly.
Spot shorting needs to be cautious, and irrational words may bring huge risks. If the price goes up instead of down, then investors will lose money. In addition, in some cases, if assets or commodities are not properly liquid, short selling may lead to drastic price fluctuations and even market fluctuations. Therefore, investors should carefully understand the market situation and control risks when making short selling in spot.