1 What do hedging spot traders, traders or producers do? For example, a steel boss who has entered 1 billion is afraid of future price decline, so he is short in the futures market. If it happens to fall, making money in the futures market and losing money in the spot market is equivalent to not losing money. This is called hedging. Large factories and enterprises will do it. They never guess. It's simple. As long as their spot is sold, they will make money.

Speculation is a short-term transaction based on market conditions or technology, and they have no spot in real life.