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 relativity. Equality means that the commodities traded in futures must be the same in type or consistent in relevant quantity as the commodities to be traded in the spot market. Opposite means taking opposite buying and selling behaviors in the two markets, such as buying in the spot market and 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 for hedging, and a certain fee will be charged for hedging transactions.

(3) Compare the net risk amount and the hedging fee, and finally determine whether to perform hedging.

(4) Based on the short-term price trend forecast, calculate the expected change in basis (i.e., the difference between spot price and futures price), and make timing plans for entering and leaving the futures market accordingly, and be implemented.