What does it mean to short stock index futures?
Shorting in stock index futures trading means bearishness, that is, you can make money when the stock index falls.
The so-called short-selling mechanism means that in the past, China's stock market could only make money if it rose, and it was a unilateral market. Now with stock index futures you can go long or short. As long as you look at the ups and downs, you can make money, adding an investment tool to the securities market.
What does futures shorting mean?
Shorting futures refers to the expectation that the market will fall in the future, selling the stock in hand according to the price, and buying it after the market falls, and making a profit from the price difference. Futures implement a margin mechanism, and what is traded is the standard contract of the commodity rather than the commodity itself. Therefore, only a certain amount of margin is required in futures to directly buy and sell commodity contracts as needed.
Shorting is the operation of directly selling commodity contracts when commodity prices are expected to fall. Because what we sell is a commodity contract for delivery at a specific time in the future, as long as the contract is performed before the expiration date, there is no need to have the corresponding contract in hand when selling. The means of contract performance are divided into hedging and delivery. Hedging means buying the same amount of contracts to close the position, and delivery means taking out physical commodities that meet the standards.
Shorting futures is an investment term such as stock futures: for example, when you expect a certain stock to fall in the future, you sell your stock when the current price is high, and then buy it when the stock price falls to a certain level, so that the price difference is your profit. It is characterized by the transaction behavior of selling first and then buying.
Shorting is an operation mode in the stock, futures and other markets. It is the opposite of doing long. In theory, it is to sell the goods first, and then buy them back. Generally, in the regular short market, there is a platform for neutral warehouses to provide loans. This model can make a profit in the wave band of price decline, that is, first borrow goods at a high level to sell them, and then buy them back after they fall. In this way, what is bought is still at a low position, and what is sold is still a high position, but the operation procedure is reversed.
Extended information:
Futures are completely different from spot goods. Spot goods (commodities) are actually tradable goods (commodities). Futures are not mainly goods, but standardized and tradable commodities based on certain mass products such as cotton, soybeans, oil, etc., and financial assets such as stocks and bonds. trade contracts.
Therefore, the subject matter can be a certain commodity (such as gold, crude oil, agricultural products), or it can be a financial instrument.
However, investing in the market has certain risks, and no one can determine the future direction of the market. If the judgment is wrong, the losses to be borne are also calculated according to the leverage ratio. Again, financial management is risky, and investment needs to be cautious.
What are stock index futures? What is "short selling"?
Stock Index Futures (Stock Index Futures, that is, stock price index futures, also known as stock price index futures) refer to standardized futures contracts with stock price index as the underlying asset. The two parties agree that at a certain time in the future, the underlying index can be traded according to the size of the stock index determined in advance. The underlying object of stock index futures trading is the stock price index.