Hedging refers to using the futures market as a place to transfer price risks, using futures contracts as a temporary substitute for buying and selling commodities in the spot market in the future, and buying them now in preparation for selling them later or Trading activities that insure the price of goods that need to be purchased in the future.

The role of hedging

Enterprises are the cells of the social economy. What they use the resources they own or control to produce and operate, how much they produce and operate, and how they produce and operate are not only directly related to It is not only related to the production and economic benefits of the enterprise itself, but also to the rational allocation of social resources and the improvement of social and economic benefits. The key to whether an enterprise's production and operation decisions are correct or not lies in whether it can correctly grasp the market supply and demand status, especially whether it can correctly grasp the next change trend of the market. The establishment of the futures market not only enables enterprises to obtain supply and demand information in the future market through the futures market, improves the scientific rationality of enterprise production and operation decisions, and truly determines production based on demand, but also provides enterprises with a way to avoid market price risks through hedging. It plays an important role in improving the economic benefits of enterprises.

The current appreciation of the RMB is accelerating, and the need for hedging tools for import and export enterprises has become increasingly intense.