To hedge, we must first define our own position. If you want to be based on the spot-based industry, then futures is a tool to assist the risk management of spot operation. If you want to be based on speculation, then in theory, both futures and spot can be used as tools for speculation. If you are familiar with futures, there is no need to use spot. After all, the spot will involve quality, transportation, warehousing and other issues, and speculation is just to earn the difference. If you have confidence in your control, you can have both.

According to my experience, I divide hedging into active hedging and passive hedging. Active hedging is an active hedging strategy by using futures tools when the price trend can be grasped. In some cases, a unilateral bull market or bear market is so obvious (although this is rare); Passive hedging is what you said, because the future price trend is uncertain, futures must be used for hedging on the premise of spot. Obviously, the above two situations are based on the premise that you position yourself as a spot entity to trade. If it is positioning speculation, mature and rational speculators will not rush to shoot without being sure. Only novice or immature traders will mess around. It should be pointed out that, in my opinion, speculation is a neutral word, not a derogatory term.

I hope my answer is helpful to you. I am the investment manager of Beijing Fidelity Yintong Investment Co., Ltd.