If you have idle funds and want to make some investments, I recommend you to buy futures. Futures is an investment method with stable income and low risk. A better understanding of futures knowledge can help you invest in futures better, so why do you want to do futures and what is futures? Now this website will take you to know and understand what futures are for. Why do copper and aluminum related enterprises do futures now? Q: Mainly processing enterprises and trading enterprises. At present, the prices of copper and aluminum are falling. Why do enterprises do futures? Why comment on futures? Hedging is mainly used to avoid risks. The details of hedging are as follows: 1. The basic principle of hedging 1. The concept of hedging: Hedging refers to the trading activities that use the futures market as a place to transfer price risk, use futures contracts as a temporary substitute for buying and selling commodities in the spot market in the future, and sell commodities after buying now or insure the prices of commodities that need to be bought in the future. 2. Basic characteristics of hedging: The basic practice of hedging is to buy and sell the same commodity in the spot market and the futures market at the same time, that is, to buy or sell the same amount of futures in the futures market at the same time. After a period of time, when the price changes make the profit and loss in spot trading even, the losses in futures trading can be offset or compensated. Therefore, hedging mechanisms are established between "now" and "period" and between short-term and long-term to minimize price risk. Why do futures? 3. Logical principle of hedging: Hedging can preserve the value because the main difference between futures and spot of the same specific commodity lies in the different delivery dates, and their prices are influenced and restricted by the same economic and non-economic factors. Moreover, the futures contract must be delivered in kind when it expires, so that the spot price and futures price have convergence, that is, when the futures contract approaches the expiration date, the difference between the two prices is close to zero, otherwise, in the two related markets, the reverse operation will inevitably produce the effect of mutual cancellation. Second, the method of hedging 1 Selling hedging of producers: As a supplier of social goods, both farmers who provide agricultural and sideline products to the market and enterprises that provide basic raw materials such as copper, tin, lead and oil can adopt the trading of selling hedging to ensure that the goods they have produced and will be sold to the market in the future can obtain reasonable economic profits in the production process and prevent losses caused by possible price drop when they are officially sold. 2. The operator sells hedging: For the operator, the market risk he faces is that the price of the goods falls after buying and is not resold, which will reduce his operating profit and even cause losses. In order to avoid this market risk, operators can use the method of selling hedging to carry out price insurance. 3. Comprehensive hedging of processors: For processors, market risk comes from buying and selling. He is worried about rising raw material prices and falling finished product prices, and even more afraid of rising raw material and finished product prices. As long as the materials and finished products that the processor needs can be traded in the futures market, he can use the futures market for comprehensive hedging, that is, buying the purchased raw materials and selling the products, which can relieve his worries and lock in his processing profits, thus specializing in processing and production. Third, the role of hedging Enterprises are the cells of social economy. What to produce, how much to produce and how to operate with the resources owned or mastered by the enterprise are not only directly related to the economic benefits of the enterprise itself, but also related to the rational allocation of social resources and the improvement of social and economic benefits. The key to the correctness of enterprise's production and management decision lies in whether it can correctly grasp the market supply and demand state, especially whether it can correctly grasp the next changing trend of the market. The establishment of the futures market not only enables enterprises to obtain the supply and demand information of the future market through the futures market, but also improves the scientific rationality of the enterprise's production and operation decision-making, and truly determines the production on demand. It also provides a place for enterprises to avoid market price risks through hedging, which plays an important role in improving the economic benefits of enterprises. Four. Hedging strategy In order to better achieve the purpose of hedging, enterprises must pay attention to the following procedures and strategies when conducting hedging transactions. (1) Adhere to the principle of "equality and relative". "Equality" means that the commodities traded in futures must be the same as those traded in the spot market in terms of types or related quantities. "Relative" refers to the opposite buying and selling behavior in two markets, such as buying in the spot market, selling in the futures market, or vice versa; (2) Spot transactions with certain risks should be selected for hedging. If the market price is relatively stable, there is no need to hedge, and the hedging transaction needs a certain fee; (3) Comparing the net risk amount with the hedging cost, and finally determining whether to hedge; (4) According to the short-term price trend forecast, calculate the expected change of basis (that is, the difference between spot price and futures price), and make the timing plan for entering and leaving the futures market accordingly, and implement it. Internet hot search words: futures, how to do futures, futures are easy to do, why do enterprises do futures?