Reverse trading, also known as reverse trading, refers to the operation of traders in the futures market on the same trading day, which is exactly the same as the futures contract they originally bought (or sold), but in the opposite direction.

Traders can hedge their positions through reverse trading, complete a complete trading process, close their trading positions and withdraw from the market.

For example, on May 10, a trader bought the 15 mung bean contract due in June at a price of 284 1 yuan, and sold the 15 mung bean contract due in June at a price of 2895 yuan on the same day. In this way, in May 10, traders not only used reverse trading to hedge the previously bought mung bean contract, but also gained considerable profits. It should be noted that the key to reverse trading is that the variety, quantity and expiration date of the bought and sold contract must be exactly the same as the original bought (or sold) contract, and the direction is completely opposite. Otherwise, traders increase the number of positions in the same contract and close their positions.