The price difference between different markets and different commodities, and the trading behavior of buying and selling two futures contracts of different types at the same time in order to obtain risk profits from them.

Hedging is a special way of futures speculation. It enriches and develops the content of futures speculation, and makes futures speculation no longer limited to changes in the absolute price of futures contracts, but more to futures contracts. Level changes in relative prices. This is generally called arbitrage. This is the basic futures knowledge that investors need to learn.

Cross-market hedging refers to the simultaneous trading of opposite futures positions of two similar commodities on two exchanges. Hedging Profits The following takes stock index futures as an example to illustrate the practice of cross-market arbitrage trading.

All stock indexes reflect the total market risk. Therefore, in the long run, hedging profits are consistent in the direction of movement. Hedging profits are based on this characteristic. Traders When formulating a hedging profit trading strategy, the focus of hedging profits is mainly on whether the difference between two different stock indexes will expand or shrink. Hedging profits are not aimed at the overall market movement direction. If the relative For another kind of stock index contract, the hedging profit of a certain stock index contract will be larger in the long market. The hedging profit may be smaller in the short market. The hedging profit will be smaller. The Yin Bill Index contract is considered a strong contract.