Spot shorting is an investment term of spot gold, spot silver, stocks and futures, and it is an operation mode of spot gold, spot silver, stocks and futures markets. It is the antonym of "do more". Theoretically, it is to borrow goods to sell first and then buy them back. Short selling refers to selling the position at the current price in the expectation of future market decline, and buying it after the market decline to obtain the difference profit.
The key points that should be paid attention to when implementing spot shorting are:
First, investors are required to have the ability to judge the overall trend of the market.
Because shorting is only applicable to the market in the downward trend channel, this operation skill can not be adopted in other periods, such as the market in the horizontal consolidation stage or bull market stage. Therefore, investors are required to recognize the general direction of future trends.
Second, short should grasp the rhythm of stock price operation, sell when the stock price rebounds and buy when the stock price plummets.
On the way down in a weak market, there will often be a short-term rebound and a diving plunge. Investors should make full use of this irrational change opportunity in the market and make full use of the price difference opportunity created by the wide fluctuation of stock prices to obtain profits.