Effective hedging means that the hedging instrument has obtained returns and avoided risks! Ineffective hedging means that the hedging instrument fails to achieve expected returns and fails to effectively avoid risks! For example: If you sell spot copper in futures, if the higher the spot copper price, the greater your profit, then what you are most worried about is the falling copper price, then you will short-sell copper in the futures market to preserve its value, which is effective. Hedging. If you are long copper, then it is an ineffective hedging.

The gains and losses that occur during hedging are the hedging gains and losses! Please rate and adopt if it helps. Thank you!