A shares closed down today at 2900 points, I believe many friends are already thinking about whether A shares can be shorted, this time I will take you to understand this problem!Options A shares themselves cannot be shorted, and in the process of trading, they can often only earn profits through ***. However, when trading on the A** market, it is not possible to make a profit by shorting. However, through securities lending and stock indexes, it is possible to make profits through *** in some special circumstances.
However, A-shares can be shorted through tools, such as margin trading, ** options.
Margin trading, also known as credit trading, refers to the act of investors providing collateral to ** companies with margin and securities lending business qualifications, borrowing funds to go public (financing transactions) or borrowing listings and selling them (securities lending transactions).
It should be noted that not all investors can open margin trading permissions, and there are certain requirements for the amount of investors' funds: opening margin trading requires investors to have an average daily asset of 500,000 yuan in the first 20 trading days, and at the same time, investors can only short the ** within the margin trading range.
However, this kind of trading is very disadvantageous for many investors with less capital, and this trading method increases the trading risk. Once it does not meet expectations, the stock price may appear **, and the funds will be much more than the previous *** principal when the *** is carried out, resulting in a large economic loss. This kind of securities lending and borrowing transactions are also relatively limited, not all A shares can be shorted, only margin trading is the underlying stock. The most important thing is that the securities lending quota given by the brokerage is usually very small, and some small business departments may not have a securities lending quota, so it doesn't matter if they are short.
A stock index is a contract that is traded on the underlying of a specific index.
The full name is *** index**, also known as stock price index**, futures index, refers to the stock price index as the subject of the standardized ** contract, the two parties agree that on a specific date in the future, according to the size of the pre-determined stock price index, the underlying index can be bought and sold, and the expiration is delivered through cash settlement difference.
This trading method also has high requirements for the trader's own ability, and it is necessary to have a relatively strong ability to collect information in various markets, otherwise it is easy to liquidate the trend. Therefore, not every trader can achieve shorting.
An option is a contract that gives the buyer of an option the right to purchase or an agreed amount of the underlying asset at an agreed time, but there is no obligation to buy or do so. The seller of an option is the party who sells the option contract and receives a premium from the buyer of the option.
The rights and obligations of the buyer and the seller in options trading are not equal. The buyer is only given the right to buy or sell, but does not have the obligation to buy or sell, while the seller only has the obligation to perform the contract, but has no right.
Option shorting refers to the action taken by an investor when an asset is going to be.
Specifically, investors can choose to short the asset by selling a call option or buying a put option.
Selling a call option means that the investor may need to sell the asset when the option expires, while buying a put option means that the investor has the option to sell the asset for a specific ** when the option expires.
The specific operation method of short selling, the buyer shorts the ** put option, and the seller shorts the call option.
In an options contract, the investor only needs to pay the premium, not the full amount of the underlying asset. Therefore, even if the market reverses, the losses that investors can bear are limited.
Options contracts have the flexibility to choose different expiration times and exercises**, enabling investors to develop an investment strategy that suits them according to their expectations and risk tolerance. For example, an investor can choose to sell an option contract for a short period of time to reap quick benefits.
Because you can trade in both directions, that is, buy up and buy down. Therefore, if investors do not want to focus on options, they can also choose to use options to hedge the risks of other products and make an insurance function for funds.
If it helps you, we wish you a happy life.