In fact, shorting is to use the price difference to make profits, and A shares cannot be shorted directly, but they can be shorted through tools. Options
A shares cannot be shorted. In the normal process of trading, shareholders can often only earn profits through ***, and shareholders can only lose money. Of course, everything is not absolute, and A shares cannot be directly shorted, but they can also be shorted indirectly through tools, including options, ** and margin trading.
In the financial market, there are very few investment products that support long and short (two-way) trading, and options are one that everyone recognizes. In contrast to longing, shorting is to borrow the underlying asset first, then sell it for cash, and after a period of time, then spend cash ** to return the underlying asset.
1. Buying put options: Investors who buy put options have the right, but not the obligation, to sell the underlying asset at a specific time in the future. If the underlying asset *** buys a put option, the investor can make a profit from it.
2. Sell call option: Investors who sell call options have the obligation but not the right to use a specific underlying asset at a specific time in the future. If the underlying asset*** or remains unchanged, the investor who sells the call option can retain the option fee received.
3. Vertical credit spread strategy: This strategy includes simultaneously** and selling put and call options belonging to the same underlying asset, with different exercises** and expiration dates. This strategy aims to profit from the underlying asset***.
4. Day trading strategy: Day trading refers to the trading strategy of clearing all positions before the end of a trading day. For short selling, investors can make a profit by tracking and utilizing the underlying asset*** in a short period of time.
* Short selling is simply to be a seller in the contract, and complete an operation of selling high and buying low. In the market, the bears see a certain type of **variety**soon**, for example: **soybeans, copper and aluminum, etc.**, if you think that such a **may be**, then you can sell short, and wait until this kind of *** to a certain position can be bought back.
For example, if you think that product A will fall in the future, then in other markets you can only choose to stop loss in a reasonable position, or continue to invest in flattening the loss rate, and wait for **, you can only do not lose too much, or delay time.
But it's not the same in the **market!You can sell your ** in advance when you predict or find **, of course, if you don't have **, you can let the exchange provide a short order to you, when a product falls, you will then lower the price **A product to return the previous short order to the exchange, then there will be a price difference, this difference is your profit!
This is the shorting, so to choose investment, you need to be more familiar with your product, you need to have a more professional investment ability and a better attitude!
Margin trading can be shorted. Ordinary investors can only go long on the A** market, but investors can indirectly achieve the purpose of short selling through margin trading. It mainly refers to the behavior of investors who believe that a certain ** will appear in the future, borrow ** from **company and then sell it.
For example: Suppose your rice will decline in the future, so you ask Xiao Wang to borrow a bag of rice, and then, you sell the borrowed rice at the market price of 100 yuan, and after a while, as you expected, the rice began to fall sharply and became 60 yuan a bag. At this time, you buy back a bag of rice at the market price of 60 yuan and return it to Xiao Wang. In this way, without interest, the gross profit you earn is $40.
The first point: freedom to buy and sell. The biggest advantage of options trading is the freedom to buy and sell, after **, the buyer can choose the right time to sell**, and the buyer can choose the right time to sell.
The second point is that the risk is controllable. Options trading, compared with other financial management methods, has a lower risk, especially compared with **, type ** compared with the risk is significantly lower.
The third point: there are multiple strategies. To buy and sell options, there are many strategies that can be used by both sides of the transaction, and there are various ways, as long as you can think of a strategy, you can use it.
If it helps you, we wish you a happy life.