1. Hedging is aimed at commodity traders: that is, reverse operation in the futures and spot markets, so that losses will be incurred in one market, but profits will be made in the other market, and the breakeven will be achieved, thus playing the role of value preservation. For example, a soybean processor is going to buy 10 tons of soybeans within three months, and the price of soybeans is 2000 yuan/ton. He is afraid that the price of soybean will rise in three months, and it will cost more, which is not conducive to production. In order to avoid or reduce this risk, he will buy a 10 ton soybean futures contract in the futures market three months later. In this case, he lost money in the spot market, but made money in the futures market. After breakeven, the price equivalent to buying soybeans is about 2000 yuan, and the cost has not changed much, which has played a role in maintaining value and stabilizing production.

2. Hold the contract until the delivery date. If you don't hedge the contract, you must carry out spot (physical) exchange according to the contract standard. In futures trading, the proportion of final delivery is very small.