Short selling means selling goods first and then buying them. When gold rises to a high level, you predict that it will come down. At this time, you can sell the contract first and wait until the low position to buy back gold. If the price of gold falls, you can buy back the gold sold at a high price at a low price and earn the difference. Of course, if the price of gold goes up, you need to pay a higher price to buy back the gold you sold, resulting in a loss.

The so-called gold short-selling mechanism simply means that investors can sell gold first and then buy it within the agreed time limit in the future in accordance with the trading rules without actually holding it. If the price of gold shows a downward trend, investors can make a profit in the process of selling first and buying later. Some investors will not understand how to sell without gold. This leads to the concept of margin. When investors judge that the price of gold will fall, they can pay a certain percentage of deposit in advance, borrow gold from a third person and sell it. When the price falls, they can buy the same amount of gold and return it to a third person, and recover the deposit they have paid. At the same time, investors have completed the profit process of "selling high and buying low".