We know that enterprises encounter many risks, which are generally divided into two categories. One is systemic risk, which means that the generation and formation of risk is beyond the control of the risk taker. Systemic risks fall into two categories. One is the risk of macro-environmental change, which can be divided into force majeure risk and change risk beyond the control of enterprise managers due to political, economic and social factors, such as extremely bad natural disasters, 1. Another systemic risk is policy risk. According to the specific stage of market development, the management authorities strengthen the macro-management of the market by formulating, promulgating and implementing policies. Whether the policy is reasonable or not depends largely on the management's understanding, experience and maturity of the industry. Therefore, the implementation and change of policies are very subjective. If the policy is unreasonable, the policy changes frequently or the policy release lacks transparency, it may directly or indirectly affect the relevant market entities to varying degrees, resulting in unpredictable losses, and then lead to risks.

The other is non-systematic risk, which we can also call market risk, which refers to the risk that can be controlled or managed through the measures taken by related enterprises. Including credit risk, operational risk, technical risk, financial risk, legal risk and so on. Among them, operational risks include investment risk, economic contract risk, product market (price) risk, procurement and inventory risk, debt risk, guarantee risk, exchange rate risk and so on.

The reasonable profit of an enterprise is an effective guarantee against market risks and a prerequisite for the smooth operation of the enterprise. When the profit of the enterprise is not guaranteed, its cash flow, financing repayment ability, credit standing, employee wages and benefits, procurement plan, marketing plan, etc. There is no guarantee that every uncertain factor in every link of an enterprise may affect its operation. In 2008, many enterprises were greatly impacted by the financial crisis, and some even closed down, largely because the prices of means of production fluctuated greatly, the reasonable profits of enterprises could not be effectively guaranteed, and the capital flow of enterprises was cut off.

Hedging is called hedging in English and can also be translated as hedging. Its core is to hedge market risks and ensure reasonable profits of enterprises. Enterprises can hedge to avoid some operational risks and financial risks caused by large fluctuations in the prices of products or raw materials.

The following figure shows the profit curve of the enterprise before and after hedging:

1, determine the procurement cost and ensure the profit of the enterprise. The supplier has signed a spot supply contract with the buyer for future delivery, but at this time, the supplier does not need to buy the materials required by the contract. In order to avoid the price increase when purchasing raw materials in the future, we can lock in profits by buying related raw materials in futures.

2, determine the sales price, to ensure corporate profits. Production enterprises have signed contracts to purchase raw materials, sell related finished products through futures and lock in production profits.

3, to ensure that the enterprise budget does not exceed the standard.

A. When an enterprise bids, it will budget the relevant raw materials through futures and make relevant bidding plans. Once the bid is confirmed, the prices of related raw materials will be locked through futures to ensure the profits of enterprises.

B. When making an annual plan, an enterprise shall refer to the futures price of relevant materials, formulate its annual plan and budget, and ensure the effective implementation of the annual plan through futures.

4. Upstream enterprises of raw materials in the industry guarantee production profits.

The source enterprises in mines, farms, chemical plants and other industries sell related products through futures and lock in corporate profits.

5, to ensure trade profits

When traders sell or buy related futures, they sign relevant sales contracts to lock in trading profits.

6. Adjust the inventory

A, when it is considered that the current raw material price is reasonable and it is necessary to increase the inventory, futures can be used instead of spot inventory, and the utilization rate of enterprise funds can be improved through its leverage principle to ensure the cash flow of enterprises.

B, when the price of raw materials falls, and the enterprise's inventory cannot be reduced due to production or other factors, sell it in futures to avoid the losses caused by price depreciation to the enterprise.

7. Financing When spot enterprises need financing, they can obtain a higher financing ratio from banks or related institutions by pledging futures warehouse receipts.

8. Avoid exchange rate losses of foreign trade enterprises.

When foreign trade enterprises settle accounts in foreign currency, they can lock in the exchange rate through futures to avoid the losses caused by exchange rate fluctuations and lock in the order profits.

9. Purchase or sales channels of enterprises. In some specific cases, the futures market can be another channel for enterprises to buy or sell, and it is an appropriate supplement to spot purchase or sale. 10, others depend on the specific situation of each enterprise. ......