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Why do small and medium-sized trading companies hedge with futures instead of options?
(1) The option has high leverage and the risk is not easy to control; Futures can lock in income and control risks.

(2) At present, big consortia including Country Garden and CITIC Group have suffered huge losses in options trading, and everyone knows that options are not easy to handle.

(3) If we want to talk about hedging, both options and futures can be used. But many times the purpose of trading will change from hedging to speculation, a typical example is the Rong family. If you insist on the purpose of hedging, both are optional.

(4) Option terms are not easy to identify whether you are long or short. If you unfortunately become an empty party, you will face unlimited losses and cable gains in theory.