Short selling means selling goods first, then buying them. When gold rises to a high level, you predict that it will come down. At this time, you can sell the contract first and wait until the low level to buy back gold. If the price of gold falls, you can buy back the gold sold at a high price at a low price, so as to earn the price difference. Of course, if the price of gold rises, you need to pay a higher price to buy back the gold you sold, thus forming a loss.

The so-called gold short-selling mechanism simply means that investors can sell gold first without actually holding it in accordance with the trading rules, and then buy it in an agreed period in the future. If the price of gold shows a downward trend, investors can make a profit in the process of selling first and buying later. There will be investors who don't understand how to sell gold without it. This leads to the concept of margin. When investors judge that the price of gold is going to fall, they can pay a certain percentage of margin in advance to borrow gold from a third person and sell it. When the price falls, they can buy the same amount of gold and return it to the third person, and recover the paid margin. At the same time, investors have completed the profit process of "selling high and buying low".