What does futures hedging mean?
Reverse arbitrage, that is, reverse arbitrage, when the ratio of futures to spot price is lower than the upper limit of no arbitrage interval. No-arbitrage interval refers to the theoretical price interval of futures after considering transaction costs. Generally speaking, forward arbitrage buys in recent months and sells in distant months, while reverse arbitrage buys in distant months and sells in recent months. In futures arbitrage trading, investors buy or sell futures contracts, while selling or buying securities or other related assets with the same value in the spot market.