If the price falls after buying the spot, although the physical transaction suffers losses, futures hedging can make a profit; If the price rises after buying the spot, the futures hedging will lose money, but the spot trading will be profitable, and the profit and loss can be offset.
This practice of selling hedging can spread risks and protect the interests of actual users. Sales hedging is often adopted by processing enterprises, manufacturers and traders, which can reduce the risk of price fluctuation, help stabilize production costs and ensure profits.