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How should production enterprises use futures market to avoid risks?
for example. . White sugar producer. .

the current market price is 73. . Your production cost is 6. That is to say, if we keep this price. . You will have a profit of 13. . . You are afraid that the future price drop will lead to reduced profits or even losses. .

then press 73 at this time. Sell the same amount of sugar you produce on futures. . . So your profit is locked at 13.