Arbitrage is mainly divided into buying arbitrage and selling arbitrage. Let's talk about how silver investors and silver spot traders hedge in the market.
Silver spot merchants need to deliver after a certain period of time, fearing that the price increase will reduce their own interests. They can buy and open positions in the trading market. On the delivery date, the holders can adjust their sales in the market. This can lock in their interests in advance. This operation strategy is called purchase hedging.
Silver investors need to sell their goods after a certain period of time, fearing that falling prices will increase their own costs. They can open positions in the market for the spot period of silver. On the delivery date, investors can adjust their subscription in Huatong market and lock their own costs in advance. This operation strategy is called sales hedging.
It can be seen that in the silver trading market, it is not only suitable for investors to speculate, but also suitable for many spot operators to carry out insurance operations here. Moreover, if many readers carefully read the calculation formulas of the basic gap and the settlement price of aquatic products, we can also see that these two products are closely related to the spot price. In other words, not only silver spot futures products can meet the strategic needs of hedging, but also the basic gap and rising aquatic products can achieve the purpose of hedging through proportional combination.