There are two kinds: sell (sell) hedging and buy (buy) hedging. The specific operation method is as follows:

(1), sell hedging is used to protect the future stock portfolio price decline. Under this kind of hedging, when the hedger sells the futures contract, it can fix the future cash selling price and transfer the price risk from the holder of the stock portfolio to the buyer of the futures contract. One case of selling hedging is that investors expect the stock market to fall, but ignore the sale of their stocks; They can short stock index futures to make up for the expected loss of holding stocks.

(2) Purchase hedging is used to protect the future price changes of the stock portfolio. Under this kind of hedging, the hedger buys futures contracts, for example, the fund manager predicts that the market will rise, so he wants to buy stocks; But if the funds used to buy stocks can't be put in place immediately, he can buy futures indexes, and when the funds are enough, he will sell futures to buy stocks, and the futures income will offset the cost of buying stocks at high prices.

2. The concept of hedging:

Hedging is the use of futures to fix the value of investors' stock portfolio. If the stock price in the portfolio rises or falls with the price change, then the loss of one investor can be hedged by the profit of another investor. If the gains and losses are equal, this kind of hedging is called complete hedging. In the stock index futures market, complete hedging will bring risk-free returns.