One of the trading rules of futures trading is two-way trading, hedging and liquidation.
To understand this, you need to understand two meanings:
1. Futures come from forward spot trading. Simply put, customers who need physical transactions will hold futures contracts until they expire, and then conduct physical transactions in the spot market as if they had ordered a forward contract to pay off the payment when it expires. But for most customers in the futures market, there is no actual trading demand, so they will not hold futures contracts until they expire, and they will settle before they expire. This is speculation, earning the difference.
2. The settlement method is simple. The difference between futures and stocks lies in:
Stock: buy = bullish+enter and sell = exit.
Futures: opening position = closing position in the market = leaving the market.
If the market is bullish, it is to buy multiple positions and then sell short positions to make a profit.
If the market is bearish, it is to open a short position and wait for the market to fall before buying back and closing the position for profit.
You can see that the long and short directions of futures must be opposite, which is hedging.