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How to use short selling

1. What is securities lending?

Securities Lending transaction in Futu means that you borrow securities from Futu and sell them with cash or securities as collateral, buy the same amount and variety of securities at a certain time in the future, and pay certain interest and handling charges.

When you think that a stock will fall in the future, you can do short selling. You can sell (short sell) the stock before it falls, and buy it back after it falls to earn the profit.

2. How to use short selling?

The number of available securities to sell is shown on the trading interface. When the user has no position, the order generated by selling a certain stock is the short-selling order. The order confirmation interface will also remind you that the current order is a short-selling order, and the reference interest rate for short selling will be provided to you on the right side (please note that the reference interest rate of short selling is only a reference value, and the actual interest rate is indicated in the statement, please pay attention to check the statement).

Note: Cash Available means the maximum quantity you can buy with cash; Available for Sell means the stocks or securities derivatives that can be sold; If there is no position, it will show 0; Buy on Margin means that the maximum quantity you can buy with margin; Sell on Margin means the number of the current stocks that can be short sold.