Short selling is a way of operation in the stock and futures markets. This is the opposite of doing more. Theoretically, it is to sell the goods first and then buy them back. Generally, the regular short-selling market has a neutral warehouse to provide a platform for borrowing goods.
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.
In the futures market, the speculative manipulation of the empty side is generally based on the principle that all forces are mobilized to push up the price of a futures product, resulting in a false situation that the futures product is about to rise, and then high-priced contracts are signed with many parties to attract the king into the urn, and the empty side begins to smash the market, and the futures price plummets, thus making profits.
Extended data
Short and stop loss
The biggest difference between short selling and stop loss is that after the stop loss is sold, it may not be bought back, and the financial loss caused is very realistic and cruel. Short selling means buying back on dips after selling, and making profits by reverse operation without expanding the loss of the original quilt cover.
Therefore, short selling is more acceptable to investors than stop loss. Compared with stop loss, investors have more stable mentality, more decisive actions, lower error rate and higher success rate.
Take soybean meal as an example, let's make a simulated transaction of short futures. The flow of this transaction is like this. You agree to a contract first (no matter who you sign the contract with). The price agreed in this contract is 3800 yuan/ton (you are the seller), and the contract has a term, such as six months.
In these six months, if the price of soybean meal drops to 3,500 yuan/ton, and if you are the seller in the contract, it has been stipulated in your contract that you can perform this contract at the price of 3,800 yuan/ton at any time in these six months, then you can buy soybean meal or contract in the market at the price of 3,500 yuan/ton and sell it to the buyer in the contract, so that you can complete a short transaction.
Baidu encyclopedia-short futures