Spot silver hedging transaction, also known as arbitrage transaction, is a transaction that regular silver traders will conduct. Simply put, it is to make a portfolio, and investors can buy up and down at the same time. As a result, no matter whether the market goes up or down, one party always makes money and the other loses money. As long as the profit rate is greater than the loss rate, the whole can be profitable, and this hedging trading model is absolutely legal, which is more conducive to the trading of silver and gold investment traders. It is a trading measure to avoid the investment loss of financial products. The most basic way is to buy spot silver to sell futures or sell spot silver to buy futures. Guangfa is used in silver futures.

Hedging transaction is to conduct two market-related transactions at the same time, in opposite directions, with the same amount, and break even. The opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter what direction the price changes, there is always a profit and a loss. Of course, in order to make ends meet, the number of two transactions must be determined according to the range of their respective price changes, so that the number is roughly equal.