shorting is an investment term and an operation mode of financial assets. Contrary to long position, short position is to borrow the underlying assets first, then sell them to get cash, and after a period of time, spend cash to buy the underlying assets and return them. The common functions of shorting are speculation, financing and hedging.

short-selling speculation refers to selling high and buying low in anticipation of future market decline, selling the borrowed stocks at the current price, and buying them back after the market falls, so as to obtain the difference profit. Its trading behavior is characterized by selling first and then buying.

Actually, it's a bit like the credit trading mode in business. This model can make a profit in the band of falling prices, that is, first borrow goods at a high level and sell them, and then buy and return them after falling.

Extended information:

If investors want to sell securities short, they need to arrange to borrow the securities for settlement. Investors need to deposit enough margin as collateral, pay interest to lenders, and pay dividends to lenders when they receive them. Lenders who lend shares will lose their voting rights.

shorting is the reverse operation of going long. In theory, it is to borrow goods and sell them first, and then buy and return them. Generally, the regular short-selling market has a platform for third-party brokers to lend goods. Generally speaking, it is similar to credit transaction.

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