Spot hedging is also called arbitrage trading. Simply put, it is to make a portfolio, and investors can buy up and down at the same time. As a result, no matter whether the market goes up or down, one party always makes money and the other loses money. As long as the margin for making money is greater than the margin for losing money, the whole can be profitable, and this hedging trading model is absolutely legal, which is more conducive to silver and gold investors to trade. It is a trading measure to avoid the investment loss of financial products. The most basic way is to buy spot and sell futures or sell spot to buy futures.

Hedging transaction is to conduct two market-related transactions at the same time, in opposite directions, with the same amount, and break even. The opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter what direction the price changes, there is always a profit and a loss. Of course, in order to make ends meet, the number of two transactions must be determined according to the range of their respective price changes, and the number is roughly equal;