The so-called selling means selling the list in hand, but the futures market is a T+O mechanism!
In other words, you can trade in both directions:
1, buy at a low price and sell (throw) at a high price.
2. Sell at a high price and buy (sell) at a low price.
In other words, selling may be buying or selling. The single purpose is to earn the difference!
It is not difficult to understand that buying at a low price and selling at a high price. This is the way we do business in life!
You can sell at a high price and buy at a low price, which many people can't understand, as long as you know such a transaction, it's ok!
It is not difficult for you to understand after listening to the following: First of all, China's economic mechanism is also a market economic mechanism, so let me explain it to you from what we have seen.
Real estate developers, advance loans from banks, ready to build. But did you start selling the building before it was built? Actually it is! That is to say, sell first and then build (or sell first and then buy, but buy here becomes construction), and then after receiving the money from the sale, make up the shortage of the loan and continue the construction. Is to sell first and then buy/
Accurately speaking, this is a market economy, not a planned economy. I don't know if I said so much to make my friends understand.
If you can really understand it, the transaction should be easy!