There are two directions in US stock trading: long and short

To go long is to buy a good stock, and to go short is to sell without holding a position. When an investor does not hold a position in a stock, but expects the stock to fall, he borrows the stock from the broker and sells it, buys it at a lower price when the stock falls and returns it to the broker, thus earning the middle difference. Some people may wonder where the stocks I sell come from, which is the biggest difference between long and short.

While long stocks are trading directly with the market, short selling adds a crucial step: borrowing bonds, a process you hardly ever perceive. The stocks sold did not appear out of thin air; they were borrowed, and borrowed from bulls. Multiple holders of the stock lend their shares to the broker if they wish, forming a short selling pool that lends the shares to short sellers who place orders with the broker. Then the buying operation to close a short position is to buy the stock to close the position and return it to the pool, so that is why the buying of the stock while closing the position does not show any stock.

Broadly speaking, short selling is not limited to the selling of a financial product, but can be bearish on the price of the product or the market as a whole. There are many products in the financial market that can be used to profit from a bearish position, and this operation is also known as short selling.

Usually, stocks fall because of all kinds of negative news, so there are specialized organizations in the U.S. stock market that make money by publishing consolidated reports of negative information about companies and shaking down stock prices.

Here to remind everyone, usually encountered shorted stocks, it is best to observe for a period of time.