1. Hedging is translated as hedging. Hedging refers to a trading activity in which an enterprise designates one or more hedging instruments in order to avoid foreign exchange risk, interest rate risk, commodity price risk, stock price risk and credit risk, so that the fair value or cash flow of the hedging instrument changes, and it is expected to offset all or part of the fair value or cash flow change risk of the Hedge item. In order to protect the income and lock in the cost in the process of currency conversion or exchange, the practice of avoiding the risk of exchange rate changes through foreign exchange derivative transactions is called hedging. \xd\\xd\2. Specific hedging measures: \xd\ a. Selling hedging \ xd \ Selling hedging is a trading method in which contracts equivalent to the spot quantity are sold in the futures market in order to prevent the risk of the spot price falling during delivery. Usually when farmers are trying to prevent harvesting, crop prices fall; Mining owners to prevent the price from falling after mining; A method of hedging adopted by dealers or processors to prevent the price of goods from falling when they are purchased but not sold. \xd\ For example, during the spring ploughing, a grain enterprise signed a contract with farmers to buy 1, tons of corn at the time of harvest that year. In July, the enterprise was worried that the price of corn would fall at the time of harvest, so it decided to lock the price at 1,8 yuan/ton, so it sold 1, contracts at 1,8 yuan/ton in the futures market for hedging. \xd\ By the time of harvest, the price of corn really dropped to 95 yuan/ton, and the enterprise sold the spot corn to the feed factory at this price. At the same time, the futures price also fell to 95 yuan/ton, and the enterprise bought back 1 futures contracts at this price to hedge the liquidation. The 13 yuan/ton earned by the enterprise in the futures market was just used to offset the part that was undercharged in the spot market. In this way, they avoid the risk of adverse price changes through hedging. \xd\\xd\B, buy hedging \xd\ buy hedging refers to a hedging method in which traders buy futures in the futures market first, so as not to cause economic losses to themselves when they buy spot in the spot market in the future. This practice of hedging the losses in the spot market with the profits in the futures market can fix the forward price at the expected level. Buying hedging is a common hedging method for investors who need spot goods but are worried about rising prices.