Futures short selling hedging
Hello, shorting is very different from going long. Long is to buy before selling, short is to sell before buying. The problem is that if you sell first, you won't have any futures. It's okay. The exchange will give you one in advance. Just like going long, shorting is not a real transaction, but also paying a part of the deposit in advance. If the order of this issue really falls at a certain time, then this futures will be bought back at a certain time and then returned to the exchange. Everyone can understand that things are sold at a high price first and then bought at a low price. What you earn is the difference. Take toothpaste and toothbrush for example. Because of the strong correlation between the two, the market of toothpaste and toothbrush either rises or falls together. Reduce the losses caused by unilateral misjudgment. If investors do more toothpaste futures and short toothbrush futures. One day in the future, toothpaste will go up by 2 yuan, and toothbrush will go up by 1 yuan. In this way, investors earned 2 yuan on toothpaste and lost 1 yuan on toothbrush. In this way, investors not only have benefits, but also reduce risks. Although futures have higher returns, they are also more risky.