1. We don't know the specific operation of the national cotton reserve, but its function is to ensure the stability of cotton prices. An auction is similar to an auction.

2. Futures cotton trading is futures speculation and can be used for hedging. Both physical futures and financial futures are used to hedge risks.

For individuals, physical futures should be called commodity futures, which is no different from financial futures, because personal operations are arbitrage, not delivery of physical objects, and individuals cannot deliver physical objects.