hedging

How exactly does the organization work?

What is hedging?

Hedging is a financial strategy to reduce risks.

It aims to reduce the risk of portfolio by establishing opposite positions in different markets or assets. General hedging is to conduct two transactions at the same time, both related to the market, in the opposite direction, with the same amount and breakeven.

For example, investors buy and sell the same stock at the same time, which is hedging.

Can China hedge?

In China market, investors can hedge in many ways.

Stock index futures hedging

Commodity futures hedging

Option hedging

Preventive measures for hedging

Establish the opposite position

Control hedging ratio

Adjust hedging strategy

Control costs and expenses

Pay attention to operational risks