final liquidation or extension. It does not involve delivery. Of course, there are more methods and regulations for hedging, which need to be studied before implementation.

the hedging settlement should be consolidated, that is, the profit and loss of the spot end and the profit and loss of the futures end are summarized and settled. Participation in physical delivery can also be settled in this way. Hedging can participate in delivery. In China, except for the final cash delivery of stock index futures, other commodities are delivered in kind. For manufacturers, selling their own raw materials also belongs to hedging, of course, raw materials refer to their own inventory. If you don't have raw materials to sell, it is speculative.