The so-called short-selling mechanism simply refers to futures trading based on stock index futures and stock futures. According to the trading system, investors can sell stocks without actually holding them, and then buy them within the agreed time limit. If the stock price shows a downward trend, investors can make a profit in the process of selling first and buying later. Therefore, once the short-selling mechanism is implemented, investors can directly make profits in the process of stock market decline, which is essentially different from the fact that they can only make profits in the process of stock market rise.

The short selling mechanism is to borrow other people's stocks in advance, sell them when it is judged that the market is falling at a high level, and then buy them back at a low level and return them to the borrower to close the position for profit. Making a profit by rising is the opposite of buying stocks now. Because it makes a profit by falling, it will attract a lot of money to short in a bear market. Short selling here is different from what we usually call "short selling". Our short selling now is actually waiting to see. The decline of stocks and the less active trading are harmful to the market. Because of the possibility of short selling, short selling mechanism can attract a large number of off-site funds to enter the market in a falling market. Because investors have different views on the market outlook, some people are long, some are short, some are oversold, and some are oversold, so it will inevitably enlarge the trading volume.

The introduction of short selling mechanism is a great boon for brokers. As we all know, the profits of securities firms come from three parts: securities firms (collecting commissions), self-management (buying and selling stocks with their own funds) and investment banks (issuing and underwriting securities), because short selling can improve the activity of trading and greatly help to improve the brokerage business volume of securities firms. However, the actual situation now is that in the bear market without hedging mechanism, large funds can only choose to leave the market and wait and see, which makes the transaction volume tend to decrease. At the same time, the advantages of brokers themselves also make it possible for them to participate in short-selling operations and get more profits from the decline than before. Brokers are an important stabilizing force in the securities market. Regardless of the bulls and bears, brokers must make money to maintain the expenses of the sales department. In the current inactive trading situation, this is not conducive to improving the brokerage and self-operated business volume of brokers. In the long run, it will inevitably lead to the operational risks of securities firms.

So "short selling" and "short selling" are not the same thing.