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What are the advantages of hedging by borrowing or investing compared with not hedging?
Compared with non-hedging, the benefits of hedging by borrowing or investing are as follows:

1, the significance of hedging, since the global financial crisis, national high-level or domestic enterprises have paid more and more attention to hedging by using the futures market, and the requirements for hedging to serve the national economy have become higher and higher.

2. Hedging means that investors establish equal trading positions in the opposite direction of spot trading in futures trading.

3. Using the futures market for hedging is helpful to the smooth production activities of enterprises in a certain sense. Accurately speaking, the function of the futures market is to find prices and avoid risks, which is helpful to guide futures operations and avoid price risks in operations.