Current location - Trademark Inquiry Complete Network - Futures platform - What is short selling?
What is short selling?
Short selling, also known as short selling, is a common operation mode in the stock futures market. The operation is to expect the stock futures market to have a downward trend. The operator sells his chips at the market price and then buys them after the stock futures fall to earn the intermediate price difference. Shorting is the opposite of doing long. Theoretically, it is to borrow goods to sell first and then buy them back. Generally, the regular short-selling market has a platform for third-party brokers to borrow goods. Generally speaking, it is similar to a credit transaction. This model can profit in the wave band of falling prices, that is, borrowing goods at a high level and selling them, and then buying and returning them after falling. So buying is still low, selling is still high, but the operating procedures are reversed.

Short selling is divided into related underlying assets, including futures short selling, stock short selling and index short selling. Take the derivative short-selling tools related to the stock index, such as subscription cards, call options and bull certificates. Release, release, bear. A subscription card can also be called a subscription card. Playing cards can be called playing cards in the nest wheel. In terms of types, there are: currency nest wheel and crude oil nest wheel. Call warrant is a call option, and its attributes include exchange rate, premium, leverage, extended volatility and hedging value. The same is true of nest round put certificate. Just in different directions. One of the most important short-selling tools can be said to be put and put.

For example:

See 10 yuan's A shares, and analyze that its market outlook will fall to 8 yuan in a certain period of time, but you don't hold A shares. At this time, you can borrow some A shares from A-share holders and sign an agreement to return these borrowed shares to the original holders within a certain period of time. Suppose you borrow 100 A shares and sell them at 10 yuan to get cash. If, within the specified time, the stock really falls to 8 yuan, you use 8 yuan to buy 100 shares A, spend 800 yuan, and return this 100 shares to the original holder. The number of shares of the original holder has not changed, but you have earned 200 yuan cash. However, if the stock price rises to 12 yuan, you should buy 100 shares A at the price of 12 yuan, spend 1200 yuan, and return 100 shares to the original holder. The number of shares of the original holder has not changed, so you are short of 200 yuan cash.

The main points that should be paid attention to when implementing short selling are:

1, which requires investors to have the ability to judge the overall market trend.

Because shorting is only applicable when the market is in a downward channel, at other times, such as when the market is in a horizontal consolidation stage or a bull market stage, this operation skill cannot be adopted. Therefore, investors are required to recognize the general direction of future trends.

2, short to grasp the rhythm of the stock price operation, sell when the stock price rebounds, 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 maximum use of the price difference opportunity created by the wide fluctuation of stock prices to obtain profits.