First, what is short?

Short selling, also known as short selling, short selling and short selling, is a technical term in the field of stocks and futures. It refers to selling stocks at the current price in anticipation of future market decline, and buying them after the market decline to obtain the profit difference.

In short, shorting means selling first and then buying, which is an operation mode of stock or futures market.

Second, how to make money by shorting?

The general way for short-selling institutions to make money by shorting stocks is: first, analyze the operating conditions and financial reports of each company, find problems, and then spend a lot of manpower and material resources to investigate the actual situation of the company. After comparing the obtained data with the published data, it is found that there are indeed problems, which will lead to a large number of stocks being lent out by brokers and making false announcements. At this time, listed companies will plummet because of these news, and the stock price will plummet. Short-selling institutions can sell again to earn the difference.

This kind of operation is relatively routine in the actual financial market, because shorting can reduce market volatility and make the stock price tend to be stable. Secondly, it can prevent the stock market from being manipulated maliciously and rising irrationally, because many companies, in order to raise the stock price, do not hesitate to make financial fraud, make profits with unreasonable behavior and harvest investors' leeks.

At this time, short-selling institutions will become the protectors of leeks, contribute their meager strength, find problems, short stocks, and promote the stock price to be reasonable. Protect unsuspecting retail investors and prevent them from falling into it.

To sum up, we know that the main ways to make money by short selling are almost the same as those by long stocks. They provide market liquidity and establish a good system for the market.

At present, in addition to dividends, China stock market can only make profits by "doing more". That is, investors buy stocks at a low price, and then sell them at a high price in the process of rising stocks, and the difference in the middle is used as investment income.