What are the hedging strategies?
1, adhere to the principle of "equality and relative". In the futures market, "equality" means that the commodities traded in futures must be the same as those traded in the spot market in terms of categories or related quantities, and investors should abide by this rule. So, what is the reason for "relative"? Generally speaking, it is the opposite buying and selling behavior of two markets. This kind of buying and selling behavior needs the cooperation between the spot market and the futures market, specifically, buying in the spot market, selling in the futures market, or vice versa. When it comes to risks, many people face them with an evasive attitude, fearing that risks will bring losses to themselves. In the futures market, investors need risks and are not afraid of risks in order to hedge smoothly. When hedging, investors must pay attention to the changes in market prices. 3. When investing, in order to hedge successfully, investors should compare the static risk with the cost of hedging, so as to determine whether to hedge, and think carefully before taking action.