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How to hedge spot and futures?
If you want to hedge and open a reverse position in futures, that is to say, you sell copper and hope that the copper price will rise, then open a short position (put position) in copper futures, because it is a leveraged transaction, you only need to pay a certain margin, which is equivalent to buying insurance; Similarly, if you want to buy copper as a raw material for producing products, you must hope that the price of copper will fall. In order to prevent the risk brought by the rising copper price, you will open a position (long position) in the futures market. The specific position size should be designed and selected according to your spot size, and pay attention to the delivery period of futures. I suggest you go to the futures company to consult with the account manager.