1. The significance of hedging: Since the global financial crisis, both national high-level and domestic enterprises have paid more and more attention to hedging by using the futures market, and the requirements for hedging to serve the national economy have become higher and higher.

However, because China's futures market is still in the initial stage of development, the function of hedging is limited, which leads to the unsatisfactory ability of enterprises to control risks in the process of hedging, and there have been many cases of large hedging losses.

2. According to the traditional definition of hedging, hedging refers to the establishment of equal trading positions in futures trading by investors in the opposite direction to spot trading.

In a certain social and economic system, the futures price and spot price of commodities are affected by the same factors, showing basically the same price trend. When the futures contract expires, the futures price and spot price of commodities gradually converge, which means that the profit of one market can be used to make up for the loss of another market.

3. The principle is perfect in theory, but the market environment and business environment faced by enterprises are complex and changeable. If the hedging practice is carried out mechanically according to these four principles, it will suffer great setbacks.

Taking the principle of equal amount as an example, many enterprises completely copy this principle and choose futures contracts equal to the actual spot positions for hedging. However, at a specific point in time, the fluctuations of futures and spot prices are inconsistent, and the spread will be greatly widened or narrowed, which greatly reduces the hedging effect of complete equivalence.

Extended data:

Long hedging: a futures trading method in which traders buy futures in the futures market first to avoid causing economic losses to themselves when buying in the spot market in the future. Therefore, it is also called "long hedging" or "short hedging".

Short hedging: also known as selling hedging, refers to a futures trading method in which traders sell futures in the futures market first, and when the spot price falls, the profit in the futures market makes up for the loss in the spot market, thus realizing the value preservation.

Short hedging is a trading method to sell contracts equivalent to the spot quantity in the futures market in order to prevent the risk of spot price falling during delivery. Hold short positions to hedge the spot that traders will sell in the spot market. Therefore, selling hedging is also called "short selling hedging" or "selling hedging".

Reference source: Baidu Encyclopedia-Futures Hedging