The so-called short position or long position in the futures market is judged according to the position of investors in the futures market. Suppose you buy and open positions in the futures market, that is, as a market long position; If you sell a position in the market, it is defined as a short position. In other words, bulls try to make the contract price in the market rise, while bears try to make the price in the market fall.

As for the operation of using futures contracts to hedge risks, it can be understood that when you are faced with the risk of rising prices, you can buy and add positions in the market and become a market bull. In this way, the gains from rising futures prices can make up for your losses in the spot market due to rising prices. On the contrary, when you are worried about the risk of falling prices, you should sell your position and become a short position in the market. Make up for the loss caused by the spot market price by using the income brought by the falling futures price.