1. First of all, your understanding of futures hedging theory is quite good. One of your misunderstandings is that spot enterprises only participate in the futures market when the futures book is profitable. If they lose money, they might as well not participate!

2. In the production and operation activities, spot enterprises should not only bear the risk of profit-taking due to price fluctuation of finished products, but also bear the risk of profit-taking due to abnormal fluctuation of production costs.

3. The raw materials needed by enterprises for production activities need to be stocked in advance, and they are basically laid out in advance. If the production of raw materials is at a relatively low level at this time, the enterprise may take extra inventory. Even if the enterprise accurately predicts the future price of raw materials, it also needs to pay a lot of cash to prepare the warehouse for storage, which has a great impact on the capital turnover rate of the enterprise. If this part of the funds takes up too much, it may have a negative impact on the future business activities of the enterprise. If the futures market is used to establish virtual enterprise inventory, not only does it not need warehouse expenses, but it only needs to pay a deposit of 10%. This is very helpful for enterprises to improve the utilization rate of funds!

4. Enterprises make mistakes in forecasting raw materials, and prices fall instead of rising. At this time, the enterprise loses money on futures, but because the enterprise only locks its production cost in one area, it still makes a profit after processing, but the profit space is relatively small.

5. Therefore, participating in hedging is not to make a profit in the futures market to make up for the loss in the spot market, but to transfer the possible risks in the production and operation of enterprises to speculators through futures as a tool to control the possible risks in the foreseeable range.