The so-called hedging is to buy a foreign currency at the same time and short it. Besides, we should also sell another currency, that is, short selling. Theoretically, short selling a currency requires the same number of lots as short selling a currency, otherwise the hedging effect will not be achieved if the two sides are different in size. In short, hedging reduces the risk of one-way trading.

1, gold futures hedging: refers to the opposite direction, which means that the buying and selling directions of two transactions are opposite, so that no matter which direction the price changes, there will always be 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.

2. In finance, hedging refers to an investment that deliberately reduces the risk of another investment. This is a way to reduce business risks while still benefiting 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 supply and demand change, it will affect the prices of two commodities at the same time, and the direction of gold futures hedging price changes is generally the same.

3. What is the meaning of gold futures hedging? The so-called hedge settlement of gold futures means that after traders open positions in the gold futures market, most of them do not end their transactions through delivery (that is, settlement of spot), but through hedge settlement.

4. After buying and opening positions, you can discharge your obligations by selling the same futures contract; After selling and opening positions, you can cancel the performance responsibility by buying the same gold futures contract. The settlement of hedged gold futures makes it unnecessary for investors to end futures trading through delivery, thus improving the liquidity of the gold futures market.

Because gold futures can be hedged at any time according to the actual price, it can generate more profit opportunities, so it has become a profit-oriented investor-led market.

6. Because gold futures trading only needs a margin of about 10% of the transaction amount as the investment cost, it is highly leveraged, and a small amount of funds can promote large transactions.