Short selling is an investment term and a way of operating financial assets. Contrary to bulls, bears borrow the underlying assets first, then sell them to get cash. After a period of time, they spend cash to buy the underlying assets and return them. The common functions of shorting are speculation, financing and hedging.

Among them, short-selling speculation means that if the market is expected to fall in the future, it will sell high and buy low, and sell the borrowed stocks at the current price, and then buy them back after the market falls to obtain the difference profit. Its trading behavior is characterized by selling first and then buying.

In fact, it is a bit like the credit transaction model in business. 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.

Extended data:

If investors want to sell securities short, they need to arrange to borrow securities for settlement. Investors need to deposit enough margin as collateral, pay interest to lenders, and pay dividends to lenders when they receive interest. Lenders who lend shares will lose their voting rights.

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.

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