For example, if you want to export a batch of goods worth 654.38 million US dollars, the exchange rate of RMB against the US dollar is 7 RMB/US dollar, but three months later, the RMB has appreciated to 6.9 RMB/US dollar.

Then the loss is100000 * 7-100000 * 6.9 =10000 RMB.

At this time, you can sell foreign exchange futures contracts in Chicago, for example, selling a futures contract of 6.5438 million US dollars, and the exchange rate is 6.95 RMB/US dollar. Three months later, the exchange rate was 6.86 RMB/USD. If the buy contract is closed, the profit is: 654.38+million * 6.95-654.38+million * 5.75 = 9000.

The total final loss is 1000 RMB, which avoids the risk of 9000 RMB.

This is the specific process.