There are two types of locking positions. The first is to lock in losses and prevent further losses. For example, if you buy soybeans for 2000 yuan, the result falls to 1.900. This is to avoid greater losses, so that you can sell the same amount of soybeans at this price, so that no matter how the market evolves, your losses will not expand. The second is to lock in profits. For example, if you buy soybeans for 2000 yuan, it will rise to 2300 yuan. At this time, you are not sure about the market outlook. You can sell the same amount of soybeans at this price, thus locking in your vested profits. Actually, I don't recommend locking the warehouse. It is easy to lock the warehouse, but difficult to unlock it. For example, the lock loss mentioned above, when it falls to 1900, you lock the warehouse. If it continues to fall to 1700, there will be sideways consolidation. So what would you choose, flat single or multiple single? If the market continues to decline, you will lose even more if you are flat. If the market turns, your losses will also increase, so this matter is difficult to operate. I have been doing futures for more than ten years, and I have basically never locked my position. My practice is to set it strictly.

Difference:

Locking is an operation in the futures market, that is, opening more at the same price at the same time to lock in your profit or loss in the futures market.

Hedging is to use futures market and spot market to avoid risks.

Attach hedging knowledge.

Hedging refers to the trading activities in which the futures market is used as a place to transfer the price risk, and the futures contract is used as a temporary substitute for buying and selling commodities in the spot market in the future, so as to insure the prices of commodities to be bought in the future.

For example, in order to reduce the risk of falling crop prices at harvest, farmers sell future crops at a fixed price before harvest. Readers who subscribe to magazines for three years instead of two years are hedging the risk that the price of magazines may rise. Of course, if the price of the magazine drops, the reader will give up the potential income, because the subscription fee he pays is higher than the annual subscription fee he pays.

The basic characteristics of hedging: buying and selling the same commodity in the spot market and the futures market at the same time, that is, selling or buying the same amount of futures in the futures market while buying or selling the real thing. After a period of time, when the price changes make the profit and loss in spot trading even, the losses in futures trading can be offset or compensated. Therefore, hedging mechanisms are established between "now" and "period" and between short-term and long-term to minimize price risk.

Theoretical basis of hedging: the trend of spot and futures markets is similar (under normal market conditions), because these two markets are affected by the same supply and demand relationship, and their prices rise and fall together; However, due to the opposite operation of these two markets, the profit and loss are also opposite, and the profit of the futures market can make up for the loss of the spot market.

The trading principles of hedging are as follows:

1. The principle of opposite transaction direction;

2. The principle of similar goods;

3. The principle of equal quantity of commodities;

4. The same or similar principles.

In fact, hedging in the futures market is a kind of venture capital behavior aimed at avoiding the risk of spot trading, and it is an operation combined with spot trading.

What is the function of hedging?

The key to the correctness of enterprise's production and management decision lies in whether it can correctly grasp the market supply and demand state, especially whether it can correctly grasp the next changing trend of the market. The establishment of the futures market not only enables enterprises to obtain the supply and demand information of the future market through the futures market, but also improves the scientific rationality of the enterprise's production and operation decision-making, and truly determines the production on demand. It also provides a place for enterprises to avoid market price risks through hedging, which plays an important role in improving the economic benefits of enterprises.

To sum up, the role of hedging in the production and operation of enterprises:

① Lock in the production cost and realize the expected profit.

(2) Organizing spot production by using futures price signals.

③ Expand spot sales and purchase channels in the futures market.

④ Futures market urges enterprises to pay attention to product quality.

Hedging method

1. Sales hedging of producers

As a provider of social goods, both farmers who provide agricultural and sideline products to the market and enterprises that provide basic raw materials such as copper, tin, lead and oil to the market can adopt the transaction mode of selling hedging to reduce the price risk, that is, selling the same amount of futures as the seller in the futures market to ensure the reasonable economic profits of the goods they have produced or are still selling to the market in the future, so as to prevent the price from falling and suffering losses when they are officially sold.

2. The operator sells the hedging.

For the operator, the market risk he faces is that when the goods are not resold after being acquired, the price of the goods will fall, thus reducing his operating profit and even causing losses. In order to avoid this market risk, operators can use the method of selling hedging to carry out price insurance.

3. The overall hedging of processors.

For processors, market risks come from buyers and sellers. He is worried about rising raw material prices and falling finished product prices, and even more afraid of rising raw material and finished product prices. As long as the materials and finished products that the processor needs can be traded in the futures market, he can use the futures market for comprehensive hedging, that is, buying the purchased raw materials and selling the products, which can relieve his worries and lock in his processing profits, thus specializing in processing and production.