The specific practices of short trading are usually as follows: ① Pure speculative short trading. Traders do not own specific stocks themselves, but borrow stocks directly from others or through their securities companies for delivery. The purpose of its transaction is purely to obtain the difference income. 2 arbitrage short trading. Traders borrow from the lower-priced market by taking advantage of the price difference between local stock markets, and then sell them in the higher-priced market, and then buy them back when the price falls, so as to obtain the profit of the price difference. (3) Short selling with the safe deposit box as the background. Its basic feature is that traders own stocks engaged in short selling, but they still borrow the same stocks from other sources for delivery. There are three other situations: one is that traders own stocks, but these stocks are stored in the safe deposit box of banks or other special custody institutions, and it is not easy to take them out at the moment. In order to seize the trading opportunity, they borrow money from other channels first and then make up later; The second is that traders own their own stocks, but in order to delay the tax payment in the coming year, they sell the stocks at the end of the year (generally in 65438+February) and buy them back immediately in the following year (65438+ 10), thus delaying the tax payable to the next year; The third is that the trader owns a variety of stocks. When he estimates that one of the stocks is bearish, he sells it short and borrows the same stock from other places for delivery. If the market price does fall, he can use the profit as a short position to offset the losses of other stocks. And if the market price does not fall as expected, he can use the profits of other stocks to offset the losses of short trading. (4) Hedging short transactions. Traders hold excess positions in stocks, that is, they buy more than they sell and are in an "overbought" state. However, the market trend of these stocks tends to decline again, so they engage in short selling of other stocks in order to gain profits from them and make up for the possible losses caused by excessive positions.

Characteristics The main characteristics of long-term trading are as follows: ① Most of the funds needed by traders to buy stocks are lent by securities companies; (2) Different from ordinary commodity trading, the whole process of long-term trading can only be completed through the second transaction of buying stocks first and then selling them.

The main characteristics of short selling are as follows: ① The stocks sold by traders are borrowed from securities companies, not owned by themselves; (2) General commodity trading is to buy first and then sell, and the transaction is completed at one time, while short trading is to sell first and then buy. The whole transaction process consists of the second transaction.