In futures trading, there are many ways to make a profit. In fact, there are three basic forms of using interest rate futures to enter value-added transactions: long hedging, short hedging and hedging based on duration. These three forms can guide investors to get different profits in the transaction and achieve the effect of investment. First, the long hedging strategy.

Long hedging of interest rate futures means that investors want to use their future funds to buy bonds and estimate that interest rates may fall in the future, that is, when bond prices are on the rise, they buy interest rate futures contracts to avoid more funds to buy bonds in the future.

Second, short hedging strategy.

Short hedging of interest rate futures refers to the strategy that investors who hold bonds are unwilling to hold bonds for a long time in order to make profits without losing the liquidity of bonds, and at the same time avoid the risk of bond depreciation caused by rising interest rates.

Third, the hedging strategy based on duration

When the market interest rate changes, the fluctuation range of bond price depends on the duration of the change, and the fluctuation range of interest rate futures price also depends on the duration of the underlying bond of interest rate futures. The hedging ratio can be calculated according to the duration of the hedged bond and the underlying bond.