Because futures can be long or short, many investors like to hedge their risks by trading in reverse when the market is unfavorable. This is also called futures hedging. Can futures hedging be profitable?

Can futures hedging be profitable?

Whether the futures hedging transaction is profitable depends on two points: first, whether the investor completely hedges is affected by the ratio of long and short positions and the opening spread; The second is the change of the market. If investors don't hedge 100%, if the market is favorable, they can make profits, but they may also lose money.

For example, investors set a long position of 10 lot and set 8 short positions with the same price. When the market is favorable, they can actually only get second-hand income.

In fact, many hedge positions are generated after opening positions, so there will be a certain price difference between multiple orders and empty orders, and the maximum profit at this time depends on the price difference.