Current location - Trademark Inquiry Complete Network - Futures platform - Brief introduction of futures hedging
Brief introduction of futures hedging
Long hedging: a futures trading method in which traders buy futures in the futures market first to avoid causing economic losses to themselves when buying in the spot market in the future. Therefore, it is also called "long hedging" or "short hedging". Short hedging: also known as selling hedging, refers to a futures trading method in which traders sell futures in the futures market first, and when the spot price falls, the profit in the futures market makes up for the loss in the spot market, thus realizing the value preservation. Short hedging is a trading method to sell contracts equivalent to the spot quantity in the futures market in order to prevent the risk of spot price falling during delivery. Hold short positions to hedge the spot that traders will sell in the spot market. Therefore, selling hedging is also called "short selling hedging" or "selling hedging".