Simply put, futures trading involves three things: a contract, buying (contract or actual commodity) and selling (contract or actual commodity). If it is the buyer in the contract, then after the contract is performed, selling (the contract or actual goods) completes a transaction of making money or losing money, while if it is the seller in the contract, it is before or during the performance of the contract.
Buy (contract or actual goods) or sell what you have (contract or actual goods), and you will also complete a make-or-break transaction. The deposit (usually 00% of the transaction amount of 65438+) is used to ensure that the buyer must buy at the contract price and the seller must sell at the contract price during the contract period. To put it bluntly, shorting futures is to be a seller in the contract and want to complete the trading behavior of selling high and buying low.
Extended data
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.
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.
References:
Baidu encyclopedia-short futures