Futures hedging refers to a technology that can reduce trading risks while still making profits in trading. It is a trading method adopted according to the characteristics of market strength. Investors gain profits by making one more strong variety and shorting one weaker variety.

What does short futures mean?

Short selling is to borrow the underlying assets first, then sell them to get cash, and after a period of time, pay cash to buy the underlying assets and return them.

For example, the current spot gold price is 1546. If investors are bearish on the price of gold, they will buy empty orders at this price. As a result, gold will fall to 1500, and investors will use empty orders to close their positions. This whole transaction process is very short. Theoretically, the current borrowing targets and purchases are all automatically operated by computers.