That is, conducting transactions of equal quantity and opposite direction in the futures market and spot market at the same time. This is the most basic form of futures hedging transaction and is obviously different from other types of hedging transactions. First of all, this kind of hedging transaction is not only conducted in the futures market, but also in the spot market, while other hedging transactions are all open futures transactions. Secondly, this kind of hedging transaction is mainly to avoid the risks caused by price changes in the spot market and to give up the profits that may arise from price changes. It is generally called hedging. Several other types of hedging transactions are for the purpose of speculative arbitrage from price changes, which are generally referred to as hedging profits. Of course, hedging between futures and spot is not limited to hedging. When the price difference between futures and spot is too large or too small, there is also the possibility of hedging profit.