Multi-helmet protection is designed to lock in costs. Even if the price falls in the future, then my cost will be locked. There is no loss. Join a company that uses copper. In order to prevent the copper price from rising further. I am buying copper now. If it goes up, I'll use copper at the current cost. If it falls, I will also use copper at the current cost.
So is short selling. If I am a copper producer, I think the current price and profit are good, so I will sell hedging, which can lock in the profit. You can still make money from the futures market after falling. After the rise, I also locked in profits. I can still make money from the spot.
The key is not to go too far and speculate on hedging, regardless of long hedging or short hedging.
For example, if your factory only needs 100 tons of copper a year, then the number of lots you can hedge can't exceed 20 at most, and in general, you don't need to hedge all of them, so don't exceed 10 lots. Join your hedging for more than 20 lots, and you will be stupid if the price falls!
Many companies speculate on hedging, which is to die!
Like COFCO, there is a lot of money, but I think they seem to have too many empty orders at present. If they don't cut them, there is a danger of speculation. COFCO has cut a large number of soybean oil short orders last week, and may cut soybean short orders next week. Too many. The price has gone up, and you have to cut short orders. This is not hedging, but speculation! Will lose money!