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What is hedging? Please give specific popular examples. The encyclopedic explanation is incomprehensible.
Hedging transactions are also called "hedging" and "offset hedging". In the case of foreign currency assets or liabilities, sell or buy foreign currency with the same term and equivalent value as foreign currency assets or liabilities, so that foreign currency assets or liabilities can avoid the risk of exchange rate changes. At first, it refers to offsetting the possible losses caused by price changes in spot trading through futures trading in commodity trading market, and later it is also often used in foreign exchange market. For foreign currency assets, they can be offset by selling the same amount of foreign currency cash or futures exchanges; On the contrary, foreign currency liabilities can be offset by buying the same amount of foreign currency cash or futures exchanges.

Tips: The above contents are for reference only. There are risks in entering the market, so investment needs to be cautious.

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