Financial articles - falling prices can also make money (original)

　　　　　　People have a habit of thinking that to make money from buying and selling commodities, they usually buy at a low price, sell at a premium, and then earn the difference. Oh, in fact, falling commodity prices actually breeds opportunities to make money.
For example, if the price of rice is now 10 yuan per kilogram, it is a bit high. You received the news that in 3 days, the government will introduce some
policy measures to control the price of rice, and the price of rice will drop sharply. This is an opportunity to make money.
When you know that the price of rice is about to fall, you go to the rice merchant to borrow 1,000 jin of rice, and promise to pay him back 1,000 jin in 3 days (of course, you can give some favors to the rice merchant.) You get 1,000 jin * 10 yuan/jin = 10,000 yuan by selling it on the market at the current price, and then you hold 10,000 yuan and wait for 3 days. As expected, the government began to control the price of rice, and the price of rice fell to 5 yuan/jin. , and then you are using 5,000 yuan to buy 1,000 catties and return it to the rice merchant according to the agreement, so that you will directly make a net profit of 10,000-5,000=5,000 yuan. Of course, if the price of rice does not fall, but instead rises to 15 yuan/kg, you will have to spend 15,000 yuan when you buy 1,000 jin and return it to the rice merchant, and you will have to lose 5,000 yuan. Haha,
this principle is in the financial market. Sell ​​short, buy down.