In futures, what do leverage, shorting and hedging mean? FuturesFinancing refers to a form of investment in which investors (investment individuals/companies, hereinafter referred to as "fund-sharing companies") lend funds and traders (futures traders, hereinafter referred to as "customers") entrust them to manage money in the futures market. The funds lent by fund-matching companies can be used for investment in commodity futures and stock index futures. Its fundamental purpose is to solve the customer's financial difficulties and enlarge the capital leverage. Short selling refers to selling standard contracts at prices that are expected to fall in the future, and buying them after the market falls to make a profit. Futures implement a margin mechanism, trading the standard contract of the commodity rather than the commodity itself. Therefore, only a certain margin is needed in futures, and goods can be bought and sold directly as needed. Short selling is the operation of selling commodity contracts directly when the expected commodity prices fall. Because we are selling commodity contracts for delivery at a specific time in the future, we only need to fulfill the contracts before the expiration date, and there is no need to have corresponding contracts when selling. Means of performance are divided into hedging and delivery. Hedging refers to buying equal contracts to close positions, and delivery refers to taking out qualified physical objects. Hedging is a financial term that means that one investment deliberately reduces the risk of another investment. This is a way to reduce business risks while still making profits from investment. General hedging is to conduct two transactions at the same time, both related to the market, in the opposite direction, with the same amount and breakeven. Market correlation refers to the identity of market supply and demand that affects the prices of two commodities. If the relationship between supply and demand changes, it will affect the prices of two commodities at the same time, and the prices will change in the same direction. The opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter which direction the price changes, there is always a profit and a loss. Of course, in order to protect the capital, the number of two transactions must be determined according to the range of their respective price changes, so that the number is roughly the same.