Hedging refers to buying and selling futures contracts as commodities in the future spot market with the futures market as the place to transfer price risk.

A temporary substitute, a trading activity that provides insurance for the price of goods that it buys now and prepares to sell later or needs to buy in the future.

2. The basic characteristics of hedging:

The basic practice of hedging is to trade the same commodity in the spot market and the futures market at the same time, but in the opposite direction.

Trading activities, that is, while buying or selling physical objects, selling or buying the same amount of futures in the futures market, after a period of time, when

When the price change causes the profit and loss of spot trading, the profit and loss of futures trading can offset or compensate each other. So in the "present" and "period"

Establish short-term and long-term hedging mechanisms to minimize price risks.

3. The logical principle of hedging:

Hedging can preserve value, because the main difference between futures and spot of the same specific commodity is that the delivery date is different, and

Their prices are influenced and restricted by the same economic and non-economic factors, and futures contracts must be delivered in kind when they expire.

This regulation makes the spot price and futures price converge, that is, when the futures contract approaches the expiration date, the difference between the two prices is close to zero.

Otherwise, there will be opportunities for arbitrage. Therefore, before the maturity date, futures and spot prices are highly correlated. In two related markets

Reverse operation will definitely have the effect of mutual sterilization.

Two. Hedging method

1. Sales hedging of producers:

Whether it is farmers who provide agricultural and sideline products to the market or enterprises that provide basic raw materials such as copper, tin, lead and oil to the market, as

Suppliers of social goods will sell goods to the market in the future in order to ensure that they have produced and are ready to provide them to the market or are still in the process of production.

Reasonable economic profits can be reduced by selling hedging transactions in order to prevent the official selling price from falling and suffering losses.

Price risk, that is, selling the same amount of futures as a seller in the futures market as a means of hedging.

2. The operator sells the hedging:

For the operator, the market risk he faces is that when the goods have not been resold after the acquisition, the price of the goods will fall, which will make him

Operating profit decreased or even lost. In order to avoid this market risk, operators can use the method of selling hedging to carry out price insurance.

3. Comprehensive hedging of processors:

For processors, market risks come from buyers and sellers. He is worried about the rising prices of raw materials and the falling prices of finished products.

I am even more afraid of rising raw materials and falling prices of finished products. As long as the materials needed by the processor and the finished products after processing can enter the futures.

Market transactions, then he can use the futures market for comprehensive hedging, that is, to buy raw materials for hedging, to its

If the product is sold for a period of time, it can relieve his worries and lock in his processing profits, thus specializing in processing and production.

Three. The role of hedging

Enterprise is the cell of social economy. Enterprises use their own or mastered resources to produce and manage what, how much and how to produce.

Management is not only directly related to the production economic benefits of the enterprise itself, but also related to the rational allocation of social resources and the improvement of social economic benefits.

Tall man. Whether the production and management decisions of enterprises are correct or not depends on whether the market supply and demand can be correctly grasped, especially whether the market can be correctly grasped.

The next trend in this field. The establishment of the futures market not only enables enterprises to obtain the supply and demand information of the future market through the futures market, but also improves the efficiency of enterprises.

The scientific and rational decision-making of the industry's production and operation can truly achieve the production on demand and provide enterprises with hedging to avoid market price risks.

It plays an important role in improving the economic benefits of enterprises.

Four. Hedging strategy

In order to better achieve the purpose of hedging, enterprises must pay attention to the following procedures and strategies when conducting hedging transactions.

(1) Adhere to the principle of "equality and relative". "Equality" means that commodities traded in futures must be traded in the spot market.

The goods are of the same kind or related quantity. "Relative" refers to the opposite buying and selling behavior in two markets, such as in the spot.

Buy in the market, sell in the futures market, and vice versa;

(2) Spot transactions with certain risks should be selected for hedging. If the market price is relatively stable, there is no need to hedge.

Hedging transactions need to pay a certain fee;

(3) Comparing the net risk amount with the hedging cost, and finally determining whether to hedge;

(4) according to the short-term price trend forecast, calculate the basis of the expected change (that is, the difference between spot price and futures price), and according to

The timing of entering and leaving the futures market is planned and executed.

An example of verb (abbreviation of verb) hedging

1. Buying hedging: (also known as long hedging) means buying futures in the futures market, and multiple futures markets guarantee cash.

Short positions in commodity markets to avoid the risk of rising prices.

For example, in March, the oil factory planned to buy 65,438+000 tons of soybeans two months later. At that time, the spot price was 220 thousand yuan per ton, and the futures price in May was per ton.

2300 yuan a ton. Worried about rising prices, the factory bought100t soybean futures. In May, the spot price really rose to one ton.

2400 yuan, and the futures price is 2500 yuan per ton. The factory then bought the spot, with a loss of 0.02 million yuan per ton; Sell futures at the same time, per ton

The profit is 0.02 million yuan.

The two markets break even, effectively locking in costs.

2. Selling hedging: (also known as short hedging) means selling futures in the futures market, with short positions in the futures market as the guarantee.

Long positions in the spot market to avoid the risk of falling prices.

Example: In May, the supply and marketing company signed a contract with the rubber tire factory and sold 65,438+000 tons of natural rubber in August. The price is calculated at the market price, and the period is August.

The price of the goods is 1.25 million yuan per ton. The supply and marketing company was worried about falling prices, so it sold 100 tons of natural rubber futures. In August, the spot price fell to

Per ton 1. 1 ten thousand yuan. The company sold the spot and lost 0. 1 ten thousand yuan per ton; And buy futures 1. 1.5 million yuan per ton.

The profit per ton is 0. 1.000 yuan.

The two markets break even, effectively preventing the risk of falling natural rubber prices.