How to short Ethereum with money
Short selling can be carried out through:
1. Margin trading (buying stocks from financial institutions or borrowing stocks, and then repaying the principal and interest at maturity)
2. Equity allocation (use existing funds to seek leverage from the allocation company and repay the principal and interest when e)
3. Pledge stocks (pledge stocks to financial institutions and purchase stocks with pledge funds)
shorting is an important operation mode of stock and futures markets. And do long is opposite, theoretically is to borrow goods to sell, and then buy return. In general, the regular short market has a neutral position to provide a platform for borrowing goods. Actually, it's a bit like the credit trading mode in business
this mode can make profits in the wave band where the price falls, that is, first borrow and sell at a high level, and then buy and return after the price falls. So buy is still low, sell is still high, but the operation procere is reversed
extended information:
1. Stock shorting means that when an investor expects a stock to fall in the future, he will sell the stock he does not own when the current price is high, and then buy when the stock price falls to a certain extent, so the price difference is the profit of the investor. In theory, we should sell the borrowed goods first, then buy and return them. In general, the regular short market has a neutral position to provide a platform for borrowing goods
actually, it's a bit like the credit trading mode in business. This mode can make profits in the band of falling prices, that is, first borrow and sell at a high level, and then buy and return after falling. So buy is still low, sell is still high, but the operation procere is reversed
(2) short selling refers to short selling. Short selling refers to selling stocks held by investors (or borrowing stocks from investors' accounts) and hoping to buy the stocks at a lower price in the futurewhen short selling, the broker must intervene in the stock or arrange for other parties to intervene in the delivery of the stock. When you expect the price of the stock to fall, you can buy the sold shares at a lower price. If the subsequent buying price is lower than the selling price, the net difference between the two is your profit
when it comes to money investment, we have to mention the exchange rate of money. In the process of material exchange and international trade, each country needs to determine the commodity price. Within each country, the price of goods is marked by the legal tender of the country. Therefore, in international trade, each country needs to work out the exchange ratio between different currencies, which is the exchange rate
if investors are not optimistic about currency a, they think that the exchange price of currency a will fall. In other words, with the development of time, currency a with the same amount of gold
will be able to exchange less and less other currencies. Then investors can short currency a according to this judgment
the whole investment process can be simplified into the following model:
(1) the investor borrows a large amount of assets from others and agrees to return the assets in the form of currency a after a certain time. This asset can now be expressed in 10000 currency a, and after maturity, the investor needs to return 10500 currency a
(2) investors use this asset as an investment, or convert it into a kind that will not depreciate and is easy to realize. It can also be converted into other currencies that will not depreciate
(3) before the appointed time, currency a depreciated, and the real value that currency can represent decreased. As long as at this time, the actual value of 10500 currency a is lower than the original value of the borrowed assets, and after the debt is paid off, the investor can make the corresponding price difference
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
the operator will sell the chips at the market price and buy them after the stock futures fall to earn the middle price difference shorting is an operation mode of financial assets. Shorting is to borrow the underlying assets first, sell them to get cash, and then spend cash to buy the underlying assets and return them after a period of time. Shorting is a common operation mode in the stock futures market. The operation is to expect that the stock futures market will have a downward trend. The operator will sell the chips according to the market price, and then buy them after the stock futures fall to earn the middle price difference if investors want to short sell securities, they need to arrange to borrow the securities for settlement. Investors need to deposit enough margin as collateral, pay interest to the lender and pay the dividend to the lender when they receive it. When a lender lends shares, it loses its voting rights extended information: related content of short trading: 1. Use futures market to carry out hedging trading, so as to rece the risk caused by price fluctuation and ensure the normal profit of proction and operation. The people who do this kind of hedging are procers, traders, practical users, etc 2. An institution or indivial that makes use of the unreasonable price relationship between the stock index futures market and the stock market, as well as between different markets, varieties and periods of stock index futures, and makes profit by buying and selling at the same time
short and long:
short is to make a decision to short (sell currency pairs) when you are optimistic about the future decline; More is optimistic about the future rise, the decision to do more (buy currency pairs)
short positions are built on the basis of the buyer's bid, while multi positions are built on the basis of the seller's bid. Because of the symmetry of currency transactions, you can long one currency and short another currency at the same time. For example, if you exchange 100000 pounds for us dollars, you are short of the pound and long of the US dollar
the most attractive feature of foreign exchange investment is that it can be operated in two ways. You can buy profits when the currency rises (long) or sell profits when the currency falls (short), so you don't have to be limited by the so-called inability to make money in a bear market
unlike stock trading, stock index futures can be short. The so-called short, when investors expect future prices will fall, choose "first"; Sell & quot; For stock index futures, open a "; Bears & quot; After the price falls, we can choose "; Buy & quot; Stock index futures, will be sold before the position of hedging, you can get the income of the price difference when falling. Investors in futures market are free to choose "; Long & quot; Or "; Short;, No restrictions. In the transaction, you only need to choose "; Buy open & quot; Or "; Sell and open; You can build a position.