Spot hedging trading is also called arbitrage trading. To put it simply, it means making an investment portfolio. Investors can buy up and down at the same time. The result is that no matter whether the market is rising or falling, there is always one side. While making money, you are losing money. As long as the amount of making money is greater than the amount of losing money, the overall profit will be made. This hedging trading model is absolutely legal, and it is also more conducive to silver and gold investment traders to conduct transactions. It is a trading measure adopted to avoid investment losses in financial products. The most basic method is to buy spot and sell futures or sell spot and buy futures.
Hedging transactions are to conduct two transactions at the same time that are related to the market, in opposite directions, of equal quantity, and with profits and losses offsetting.
Opposite direction means that the buying and selling directions of two transactions are opposite, so no matter which direction the price changes, one will always make a profit and the other will lose. Of course, the profit and loss must be offset, and the size of the two transactions must be determined according to the amplitude of their respective price changes. Generally speaking, Make sure the quantity is equal;