Shorting is an operation in which investors expect the market to trade by selling short contracts in the future, so as to achieve profits.
The essence of ** is to sign a long-term contract with others to buy and sell commodities (or**index, foreign exchange, interest rates) to achieve the purpose of maintaining the value of money.The trading process for short selling is as follows:If you think that ***will**, go long (buy to open a position), rise (sell) to close a position, and earn: price difference = closing position - opening price.
If you think ***will**, then go short (sell to open a position), *buy) to close the position, earning: price difference = open position - close position.
1.Select the varieties that meet expectations, and conduct relevant research and analysis to determine the possibility of a trend in the market.
2.Choose a suitable trading platform or ** exchange and open a trading account with it.
3.Find the right short contract, such as selecting the Sell Open option in ** contract.
4.Enter the trade order, select the appropriate ** and quantity, and execute the trade to sell the short contract.
The following conditions need to be met for shorting:
1.There needs to be a ** contract available for sale, and short trading is available in the market.
2.Before going short, investors need to open a suitable trading account to trade on an exchange or brokerage institution.
The risks of going short are as follows:
1.Market risk: If the investor's expectations are wrong, the market will be *** instead of **, the investor will face a loss.
2.Leverage risk: Traders are usually leveraged, investors only need to pay a certain amount of margin, but can control a larger number of contracts, once the market moves in the opposite direction, the loss may be greater than the investor's margin.
3.Limit limit: In some markets, there may be a limit limit, that is, when the market rises by more than a certain amount, stop trading, at which time investors may not be able to close their positions immediately, resulting in increased losses.
When carrying out the first short operation, investors need to have certain market analysis and risk management capabilities, and strictly control risks, set stop loss points, etc., to protect their investment funds. In addition, it is recommended to fully understand the relevant laws, regulations and trading rules before making ** transactions to avoid illegal operations.