Current location - Trademark Inquiry Complete Network - Futures platform - What are hedging and arbitrage?
What are hedging and arbitrage?
In general professional futures books, hedging is the basic function of futures; Arbitrage, as a speculative way, or the role of arbitrage as a separate trading way in futures!

1 The main function of the futures market is to provide spot traders with price risks caused by price fluctuations, and to provide the function of avoiding risks-hedging!

Arbitrage is a speculative way in which speculators buy (sell) a certain variety at the same time and trade the difference. It plays a certain role in the price discovery function of the futures market!

It should be said that the two are essentially different and interrelated! It is of positive significance to understand the market!