Hedging refers to buying and selling the same commodity in the spot market and the futures market in the same quantity but in the opposite direction, or constructing different combinations to avoid the losses caused by future price changes. Futures hedging transaction refers to the reverse transaction of the futures contract of the same commodity in the futures and spot markets, so that no matter how the price of the spot supply market fluctuates, it can finally make a profit in the other market, and at the same time lose money in one market, and the amount of loss is roughly equal to the amount of profit, thus achieving the purpose of avoiding risks.

Because the hedging transaction is based on the risk brought by the actual or expected price change of the trader's foreign exchange assets, there are two kinds of hedging transactions: one is to hedge the existing spot position; The second is to maintain the value of recent spot positions.

Hedging trading refers to the trading activities of buying and selling futures contracts now or insuring the prices of commodities to be purchased in the future, with futures contracts as temporary substitutes for future spot market commodity trading.

The so-called hedging of futures refers to arbitrage.

The specific operating principle is that futures contract prices are different in different months. Usually, the far-month contract rises sharply, and the recent-month contract rises slightly. When they fell, contracts in recent months fell sharply, and contracts in far months fell slightly.

According to the principle that long and short futures can make profits. We can do this: buy a long-term contract and buy a short-term contract. In this way, hedging occurs. The far-month contract rose 800 points, and the recent contract rose 600 points and fell 600 points. 200 yuan profit after hedging. In fact, at this time, you can also choose to leave with the profit.

Hedging means that the price trend of a futures product will rise for a long time, so this operation mode can be adopted. or vice versa, Dallas to the auditorium

Futures hedging specifically refers to the trading activities that take the futures market as the place to transfer the price risk and the futures contract as the temporary substitute for the future purchase of goods in the spot market to provide insurance for the prices of goods to be purchased in the future.

The change of futures price pattern is mainly determined by the relationship between supply and demand, and the futures price of a specific contract is affected by the relationship between supply and demand in the month to which the contract belongs. As far as agricultural products are concerned, because the transfer of the main contract is generally four months apart, the relationship between supply and demand in the current main contract month may be very different from that in the future.

Of course, under the background of this specific fundamental difference, the actual operation of arbitrage opportunities is not blindly "chasing up and killing down", but a rhythmic grasp and intervention combined with technical analysis.

In short, the concept of futures arbitrage trading skill is no longer narrow, and its application is more and more extensive. In particular, its characteristics of low risk and high return are favored by investors. However, in the arbitrage operation, investors must recognize the misunderstanding and learn to use some futures arbitrage trading skills to make the investment more stable and in-depth.