As a provider of social goods, both farmers who provide agricultural and sideline products to the market and enterprises that provide basic raw materials such as copper, tin, lead and oil to the market can adopt the transaction mode of selling hedging to reduce the price risk, that is, selling the same amount of futures as the seller in the futures market to ensure the reasonable economic profits of the goods they have produced or are still selling to the market in the future, so as to prevent the price from falling and suffering losses when they are officially sold.
2. The operator sells the hedging.
For the operator, the market risk he faces is that when the goods are not resold after being acquired, the price of the goods will fall, thus reducing his operating profit and even causing losses. In order to avoid this market risk, operators can use the method of selling hedging to carry out price insurance.
3. The overall hedging of processors.
For processors, market risks come from buyers and sellers. He is worried about rising raw material prices and falling finished product prices, and even more afraid of rising raw material and finished product prices. As long as the materials and finished products that the processor needs can be traded in the futures market, he can use the futures market for comprehensive hedging, that is, buying the purchased raw materials and selling the products, which can relieve his worries and lock in his processing profits, thus specializing in processing and production.