What does it mean to not sell short when it rises sharply, and what does it mean to buy short and se

Short selling means that you are bearish on a certain branch and want to sell it in order to get the spread. But you don't have the stock in your hand, so you borrow the stock from your brokerage company and sell it, and then you buy the stock at a low price and return it to the brokerage company after the stock ****.

Summary: Null means that you don't have anything now, and you don't have anything in your hand but you want to participate in buying and selling, so you can only borrow it from others. If you want to buy, you can borrow money, and if you want to sell, you can borrow goods.

Finally, when you repay, you will repay what you borrow, and the amount will be equal. If you borrow money, you will repay the amount of money, and if you borrow goods, you will repay the amount of goods. This is a basis on which you can make a profit.

Take the popular example of going upstairs. You are a rice shop, now the flood, the harvest of agricultural products, you speculate that the price of rice will rise sharply when the harvest is harvested, so you want to collect more rice now in order to sell after the price of rice rises, but you don't have enough money to buy rice now, so you borrow 1 million yuan from the bank to buy 1 million catties of rice for 1 yuan **, two months later the rice really rose to 1 yuan per catty, you sell all the rice to get 1.5 million yuan, and repay the bank loan of 1 million yuan (if you ignore interest and fees), then you make a profit of 500,000 yuan.

On the contrary, if the wind and rain are good this year, you speculate that the agricultural products will be harvested, and when the harvest comes, the rice will **will**, and now the ** of rice is also 1 yuan per catty, and you borrow 1 million catties of rice from your friend and sell it, then you can get 1 million yuan for the goods; Two months later, the price of rice is really the first catty, so if you buy 1 million catties of rice with 500,000 yuan and return it to your friend, then you will have a profit of 500,000 yuan.

Personal opinion, for reference only, if it is practice**, you can use a treasure to practice well, there is a simulated version and a real market, the simulated version is synchronized, it will be more convenient to learn, I wish you success.

1. Short selling (also known as short selling).

Shorting refers to the expectation of the future, the hand will be sold according to the current, and the price difference will be bought after the fall. It is characterized by the trading behavior of selling first and then buying.

2. Buy short. In the short buy transaction, if the investor believes that a certain **** will rise, and wants to buy more but the funds on hand are insufficient, he can borrow funds from the loose merchant to buy ** by paying a margin, and wait for ** to rise to a certain level before selling to obtain the price difference.

Because of this trading method, the investor buys ** with borrowed funds, and it is placed in the hands of the broker as collateral, and the investor has neither sufficient funds nor **, so it is called a short buy transaction.

Pinyin】 mài kōng mǎi kōng Interpretation】 Both the buyer and the seller do not have a difference in the purchase and exit of goods, money in and out, and only settle profits and losses on the inflated price between the expiration of the entry and exit. A metaphor for speculative behavior.

Examples】 None.

Related] "Sell Short Buy Short".