In the context of the continuous rise of gold and silver, gold and silver investment has attracted more and more attention from investors. Because the investment threshold of silver is lower than that of gold, investing in silver has gradually entered the investor's field of vision. Hedging transaction is to conduct two market-related transactions at the same time, in opposite directions, with the same amount, and break even. Market correlation refers to the identity of market supply and demand that affects the prices of two commodities. If the relationship between supply and demand changes, it will affect the prices of two commodities at the same time, and the prices will change in the same direction. The opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter which direction the price changes, there is always a profit and a loss. Of course, in order to protect the capital, the number of two transactions must be determined according to the range of their respective price changes, so that the number is roughly the same. Silver hedging transaction, also known as arbitrage transaction, is a trading measure taken to avoid investment losses of financial products. The most basic way is to buy spot to sell futures or sell spot to buy futures, which is widely used in the field of silver futures. The original intention of hedging or arbitrage trading is to reduce the risk of market fluctuation to investment varieties and lock in the existing investment results, but many professional investment managers and companies use it for speculative profits. Simply hedging speculation is very risky. In the market economy, there are many kinds of silver trading that can be hedged, but the most suitable one is silver futures trading. First of all, because the silver futures trading adopts the margin system, the transaction of the same size only needs to invest less money, so the cost of doing two transactions at the same time has not increased much. Secondly, silver futures can be shorted, and both virtual hedging of contract liquidation and real hedging of physical delivery can be done. The conditions for completing the transaction are relatively flexible, so the silver hedging transaction developed rapidly after the birth of futures, a financial derivative.