I am a futures practitioner. Let me explain the trading process of commodity futures from the perspective of hedging and venture capital:

(1) Hedging:

1. Buying hedging: (also known as long hedging) means buying futures in the futures market, and using long positions in the futures market to ensure short positions in the spot market to avoid the risk of rising prices.

For example, an oil factory plans to buy 65,438,000 tons of soybeans in March two months later. At that time, the spot price was 2200 yuan per ton, and the futures price in May was 2300 yuan per ton. Worried about rising prices, the factory bought100t soybean futures. In May, the spot price really rose to 2400 yuan per ton, while the futures price was 2500 yuan per ton. The factory then bought the spot, with a loss of 0.02 million yuan per ton; At the same time, the futures were sold, and the profit per ton was 0.02 million yuan. The two markets break even, effectively locking in costs.

2. Selling hedging: (also known as short hedging) is to sell futures in the futures market, and use short positions in the futures market to ensure long positions in the spot market, thus avoiding the risk of falling prices.

Example: In May, the supply and marketing company signed a contract with the rubber tire factory to sell natural rubber 100 tons in August, and the futures price in August was RMB 0.25 million per ton/kloc-0. The supply and marketing company was worried about falling prices, so it sold 100 tons of natural rubber futures. In August, the spot price dropped to per ton 1. 1 ten thousand yuan. The company sold the spot and lost 0. 1 ten thousand yuan per ton; He also bought1.100 tons of futures at a price of 0. 1.5 million yuan per ton, with a profit of 0.1.5 million yuan per ton. The two markets break even, effectively preventing the risk of falling natural rubber prices.

(2) Risk speculation:

1. Use the price fluctuation of a certain variety to speculate.

(A) short selling speculation

Example: A speculator judged that soybean prices rose in July and bought 10 contracts (each 10 ton) at a price of 2345 yuan per ton. After that, it really rose to 2405 yuan per ton, so the 10 contract was sold at this price. Profit:

(2405 yuan/ton -2345 yuan/ton) X 10 ton/sheet X 10 sheet = 6000 yuan.

(B) short selling speculation

Example: A speculator thinks that the wheat in 1 1 month will drop from the current 1.300 yuan/ton, so he sells five contracts (each 10 ton). Wheat really fell to 1250 yuan/ton, so I bought five contracts and made a profit:

(1300 yuan/ton-1250 yuan/ton) X 10 ton/sheet ×5 sheets = 2,500 yuan.

arbitrage

(1) Arbitrage by using the price difference of related varieties.

(two) arbitrage by using the price difference of the same variety in different futures markets.

Arbitrage by using the price difference of the same variety in different delivery months.

(d) Arbitrage by using the price difference between spot and futures.

If you have any questions, please ask _