There is an implicit premise in your example that the loan you get is US dollars, but you need to convert US dollars into RMB when you use the loan. If you don't need to exchange dollars directly, you don't need to consider the risk of exchange rate fluctuations. And your example is not representative.
Many foreign trade enterprises settle in US dollars when signing export orders, but the costs of organizing raw material production and processing and paying workers' wages in China are all settled in RMB, because there is usually a gap of several months or even one or two years from signing orders to final delivery, and exchange rate changes during this period will have a great impact, and may even seriously affect the profits of enterprises.
For example, the order you signed was $654.38 +00,000, and the exchange rate at that time was $654.38 +0: 7, which means that when you signed the order, it was equivalent to signing an order of 7 million RMB, but it was paid in US dollars. If the exchange rate changes from 1: 7 to 1: 6.5 during the production process, your actual income will change from 7 million RMB to 6.5 million RMB when the contract expires, and you will lose 500,000 RMB due to the exchange rate change. If you participate in the hedging of foreign exchange futures, because you are an exporter and are worried about the rise of RMB exchange rate, you buy and hedge. The rise of RMB exchange rate can make you gain 500,000 RMB in the foreign exchange market, so that the futures gains can make up for the losses in the actual production process. This is hedging.
On the other hand, if the RMB exchange rate drops from 1:7 to 1:7.5, you will gain RMB 500,000 more in the actual production process because of exchange rate changes, but you will lose RMB 500,000 in the exchange rate market at the same time because of hedging, which will balance the two. Therefore, the advantage of hedging is that it can lock in the expected profit of the enterprise, but at the same time it pays the price of giving up the extra profit that may be obtained.
Of course, in the actual operation process, it can be flexibly grasped. Once the order is placed, it cannot be easily changed, but the hedging on futures can be lifted at any time. No one will watch the futures lose money and hold on to it. When the hedging effect is not good or even the hedging direction is wrong, the hedging operation can be stopped at any time. In this way, the actual situation is that the futures hedging only loses tens of thousands, but the spot can get an extra profit of 500 thousand. In this case, risks are avoided and profits are guaranteed. This is also the reason why many spot enterprises continue to hedge futures even though they are losing a lot, because they earn more in the spot while losing money in futures! !