The basic principle of hedging in futures market is that for the same commodity, when the spot market and futures market exist at the same time and space, they will be influenced and restricted by the same economic factors, so generally speaking, the price changes in the two markets are the same. As the futures contract approaches delivery, the spot price and futures price tend to be consistent. Hedging is to use this relationship between the two markets to take the same number of transactions in the futures market but in the opposite direction as the spot market, thus establishing a mutual offset mechanism in the two markets. No matter how the price changes, it can achieve the result of losing money in one market and making a profit in another market. The final loss is roughly equal to the profit, and the two phases offset each other, thus transferring most of the risk of price changes.