1, long hedging (or buy hedging), also known as buy hedging, refers to a futures trading method in which traders buy futures in the futures market first to avoid causing economic losses to themselves when buying in the spot market in the future. Therefore, it is also called "long hedging" or "short hedging".

2. Selling hedging is also called "short hedging". Hedgers sell futures in the futures market and hold short positions. That is, to protect their long positions in the spot market by short selling, so as to avoid the risk of falling prices. In other words, commodity demanders buy commodities in the spot market and sell futures with the same quality and quantity in the futures market to prevent losses caused by falling prices after buying. If the price falls after buying the spot, although the physical transaction suffers losses, futures hedging can make a profit; If the price rises after buying the spot, the futures hedging will lose money, but the spot trading will be profitable, and the profit and loss can be offset. This practice of selling hedging can spread risks and protect the interests of actual users.

Tips: The above information is for reference only.

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