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What is the meaning of price risk transfer in futures market?
The futures market can hedge the price risk in the operation of enterprises, that is, enterprises formulate hedging policies in the opposite direction in the futures market while producing, so as to earn risk-free spread profits. Once the product price fluctuates unfavorably, the reverse SLR in the futures will make money, thus making up for the losses in the spot. The money earned by futures is the money earned by futures speculators. In this way, the price risk is transferred from the enterprise to other investors in the market.