Not long ago, the stock market continued to plummet. Many investors have considered whether stocks can be shorted and how we can make profits through short selling.

So how do we do it specifically?

What's the best way to short a stock?

Please read below.

How to short a stock?

First of all, we need to prepare an account that can be shorted (A-shares require 500,000 funds to open a margin trading account, but US stocks do not require anything). Secondly, we can choose one in the market that has a relatively large fall potential in the later period and is short-selling.

For individual stocks, the last and most important thing is to check whether the stock has the two-in-one symbol, then check the number of stocks that can be shorted, and finally enter the number to short.

To sum up, this way we can complete the short selling operation of individual stocks.

In this operation, if the stock continues to fall in the future, then we will make more and more profits. If the stock continues to rise in the later period, then we will lose more and more.

To put it simply, short selling means that you are not optimistic about the development prospects of a certain asset. You pay a certain interest to a financial company to borrow the asset, sell it immediately, and then buy it back after the price drops and return it to the financial company to earn the price difference.

We usually buy stocks at low prices and sell them at high prices (although most of the time it backfires). This behavior is called longing, as opposed to shorting.

In this regard, short selling is also a routine operation in the stock market, and it is not illegal.