Image source: Public Account Jinyang Investment Notes
Trading is buying and selling, that is, long and short . In the stock market, most people do not have an intuitive understanding of this, after all, we have always been a unilateral market. With the development and maturity of the securities market, A shares has also launched a stock shorting mechanism. Stock shorting is a term in the stock market, which means that if you are not optimistic about the future of the stock, that is, the bearish future market, you will sell the stock. This is the so-called shorting operation.
When the stock market continues to fall, choosing to short is a good way to make money. There are generally three ways to short : The first way is to short stock options. The second method is to raise margin trading and sell stocks to short. The third type is to short and stock index futures.
Let’s take a look together. This article mainly introduces how to short stocks.
first, stock options short, T+0 two-way trading
options short means buying put options for the underlying asset. Come and short to buy the underlying asset and obtain profits from the price of the asset falling. The so-called put option refers to the right to sell a certain underlying asset at an agreed price in the future. Investors need to pay royalty to obtain this right when purchasing put options. The profit and loss of put options = strike price - (the price of the underlying item + the position building premium ). This means that the higher the price of the subject matter, the higher the profit.
In the stock options trading market, the trading hours are consistent with most financial trading products. The trading hours of stock options are from 09:30 to 11:30 am on weekdays and from 13:00 to 15:00 pm. Investors can trade during trading hours. It should be noted that stock options also have the call bidding time, which is from 09:15 to 09:30 in the morning.
According to regulations, if you want to make profits by shorting stock options, you need to open a stock option account first. The main conditions for opening an account are:
1. Investors have an average daily securities assets of 500,000 yuan or more in the 20 trading days before applying for an account opening transaction.
2, open an account in a futures company for more than 6 months and have experience in margin trading or financial futures trading.
3. Investors must also pass the exchange option knowledge level test to confirm that they have the necessary knowledge level to participate in stock option trading.
4, has the experience of option simulation trading.
5 can withstand the risks associated with high leverage of options. Stock options trading is leveraged and uses a margin system, which has relatively large risks and returns.
Second, short selling of stocks for short selling, T+0 trading
short selling of stocks means that investors do not hold the stock, but look at the future market of the stock market. First, borrow stocks from the securities company opened by the investor, then sell the borrowed stocks to short, wait for the stock to fall at a high level and then buy the stocks to return them to the securities company, which is the method of selling first and then buying. Although they are all low-priced and high-end, the order is different. Here they are sold first and then bought.
During the actual trading process, the securities company does not own all the stocks, and must be stocks that have opened positions and shorted. Securities companies also have to own the company's shares before they can short it.
Image source: Public Account Jinyang Investment Notes
Third, short stock index futures short, T+0 buy and sell
short futures stock index is the future market for bearish stock market market index. At this time, investors can sell stock index futures in the futures market, and then buy and make a profit after the stock index futures fall. Of course, the risk of futures is much greater than that of the stock market.
stock index is composed of stocks , and short-selling stock index futures is also a way to short stocks. In actual stock analysis, the trend of stock index futures is usually synchronized with the stock market.
If you want to trade stock index futures, you need to open an commodity futures account first, and apply for stock index futures trading permissions based on the commodity futures account, just like applying for Science and Technology Innovation Board on the stock account. The specific application conditions are as follows:
1. Place 500,000 available funds in the commodity futures account and for 5 consecutive trading days, please note that it must be available funds.
2. Pass the online examination of the Futures Industry Association and pass the score above 80 points, the exam is easier.
3. You need to have a cumulative 10 futures real-time trading records within three years, or 20 stock index simulation trading in 10 trading days experience.
4. Risk assessment must reach C4 level.
Shorting stocks is a double-edged sword, where the value of stocks will be fully demonstrated, but it will also cause sharp fluctuations in the stock price due to the existence of short . Generally, transactions are not successful because we know too little, but because we know too much wrong things, and we persistently defend these wrong things, and use them to understand the market and trades that are not synchronized with the market.
or above is about "stock shorting" for reference. If a stock securities account is opened and the commission is reduced, you can send a private message.
