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" " of investment is a transaction that aims to profit in the price drop.
In stock investment, it is generally called "empty sale".
Even if you don’t have a stock, you will need to pay attention.
In this article, we will explain the meaning of shorts, the mechanism of profit, the difference between long, the benefits and dangers.
What is short?
Short is a trade that sells first and returns.
We aim to profit by buying cheap and selling high.
Short is the opposite.
The lower the stock price, the more profitable.
Easily explain how it works
For example, the stock price of 1,000 yen is shortened.
| Action | Stock Price |
|---|---|
| Sell with stock | ¥1,000(税別) |
| Price falls | JPY700 |
| Buy Back | JPY700 |
| Difference | 300 yen profit |
The price is 300 yen.
However, actual credit transactions also cost fees, interest rates, and loan fees.
What is empty sales?
Empty sale is a mechanism to sell without having a stock.
We rent stocks from securities companies and sell them on the market first.
After that, buy back and return the stock you rented.
This狙 you to target profits even on the lower section.
Long
Long is a transaction that aims to profit by price rise.
Short is a transaction that aims to profit in the price drop.
| 項目 | Long | Short |
|---|---|---|
| Profit | Stock price rise | Stock Price |
| Maximum Loss | Investment | Theory is infinite |
| 難易度 | Low | High |
| Main Usage | Long-term investment | Sales, hedge, short-term sales |
It is important that beginners do not think of shorts as "a simple transaction to make money if you fall".
Why Dangerous
1. Losses can be infinite in theory
The stock price is up to 0 yen.
However, there is no theore、 limit in the rise.
That’s why shorts can spread infinitely.
For example, if the stock sold at 1,000 yen is raised to 2,000 yen and 3,000 yen, the purchase loss will be swelling smoothly.
2. Easy to understand
Short investor must buy back to stop loss.
If this buyback is concentrated, the rise will accelerate further.
This is called a short cover.
What is a short cover?
A short cover is a reimbursement of the investor who sold out.
In particular, it is easy to get up in the following scenes:
- There are many empty accounts
- Good materials
- Increased volume
- Stock Price Breaks Important
The short cover can be燃料 fuel.
Easy to understand for beginners
It is dangerous to think that it should be short because it seems to be down.
In fact, the timing is very difficult.
| 勘違い | In fact |
|---|---|
| Easy to drop | There is a踏みulsion or a step up |
| Be sure to fall if it is a bad material | Weaved case |
| Empty sale is insurance | Losses are swelling when managing |
| You can see only the lower price | Interest rate, rent, and supply and demand are also important |
It is safe for beginners to start from where they see the supply and demand of symbols with high shorts rather than shorts.
What happens if there are many shorts?
There is a growing demand for future buybacks for brands with high sales.
For this reason, it is possible that the material may not be lowered, or the material may be騰ry.
This is why the short is said to be the fuel of the rise.
Short is a transaction that aims to profit in the price drop.
It is a mechanism that sells first and buy back later.
However, because loss can be theoretically endless, it is a difficult transaction for beginners.
Let’s understand the following:
- Shorts aim for profit in the fall
- Long reverses profit structure
- Short cover may be rushed
- Loss management is very important
Beginners are safe to start with understanding the difficulty of making money in the fall.