Long hedge: refers to investors who hold cash or are about to hold cash. In order to control transaction costs, they first buy stock index futures and lock in the price level of future stocks. Future cash will be invested in the stock market, and future positions will be closed.
Short hedging: refers to the trading behavior of investors who already hold stocks or will hold stocks in order to prevent the risk of stock portfolio decline and predict the stock market decline, and sell stock index futures in the futures market.