The principle of futures hedging
Because I have to purchase goods in the future, I am worried that the goods will rise, so the futures are coming! Buying futures can lock in the price of the spot you buy, that is to say, you should buy such contracts to prevent yourself from losing money because of rising commodity prices. I'll tell you a simple way to ensure the effectiveness: you regard the long-term behavior in the futures market as buying insurance yourself, and you are afraid that you are O (I don't mean to swear, that's what I think), so I will go long and buy an insurance. If I hang up, the price of goods will go up, which is not good for me. I'm exhausted. It's written on my mobile phone.