Because the futures price will not fluctuate like the spot price, but the rising and falling trend is the same, because the reasons that cause the spot rise and fall can also cause the futures to rise and fall, so we can use the characteristics of rising and falling together to preserve the value;

Futures prices and spot prices have the same floating trend, and when the contract expires, they will be roughly equal. Because the price of futures also includes the storage fee of goods, it is no longer necessary to keep it until it expires.

Hedging is also called hedging transaction, because the English term is hedging, so it is also called Qin Hai, which is a transaction to offset the price fluctuation in the spot market. The basic operation means of hedging is to buy short futures contracts with the same trading volume when buying the spot, and buy long futures contracts with the same trading volume when selling the spot. In this way, after the expiration of the contract, the profit or loss brought by the futures exchange will be liquidated to offset the loss or profit brought by the fluctuation of spot price, thus smoothing the risks and interests, making the overall income in a stable state and achieving the effect of maintaining value.

In the whole process from production, processing, storage to sales, commodity prices are always in constant fluctuation, and the changing trend is difficult to predict. Therefore, there may be risks brought by price fluctuations in every link of commodity production and circulation. In any economic activity, hedging is an effective way to protect the economic interests of participants.

The main purpose of futures trading is to transfer the price risk of producers and users to speculators. When spot enterprises use the futures market to offset the reverse movement of spot market prices, this process is called hedging.

Of course, the futures market is different from the spot market and will be affected by some other factors. Therefore, the fluctuation time and range of futures prices are not necessarily the same as spot prices. In addition, there is marketing unit in the futures market, and the number of operations in the two markets is often not equal, which means that the hedger may gain extra profits or generate small losses when offsetting profits and losses. Therefore, when we conduct hedging transactions, we should also pay attention to the factors that may affect the hedging effect, such as basis, standard deviation of quality, poor trading quantity and so on. , so that the hedging transaction has achieved satisfactory results and provided effective services for the production and operation of enterprises.