The "hedging" in auto insurance refers to the Yuanyang bill. It means that the premium discount provided by the insurance agent to the insured is higher than the actual discount provided by the insurance company to earn the difference. The premium data filled in the customer joint bill issued to the customer is inconsistent with the financial joint bill handed over to the company, which belongs to the violation of the insurance company branch.

If investors are optimistic about the stocks in their hands and want to hold them for a long time and get dividend income, but at the same time they don't want to be forced to stop selling in the market decline, then they should make corresponding stock index futures short orders and buy an "insurance" for their holdings. This is one of the typical practices of stock index futures hedging.

Extended data:

Several characteristics of hedging:

1, profit and loss structure

Among options, option hedging has a major feature. What is this? It is a nonlinear profit and loss feature. When hedging risks, keep the room for income growth, and the specific income depends on the space for the market to fluctuate in the direction of investors.

2. Utilization ratio of funds

In the buyer's strategy of option hedging, we can hold option positions with very little royalties. On the other hand, in the hedging strategy of option sellers, the required margin is often smaller than the futures strategy under the same hedging scale, the capital occupation is smaller than the futures margin, and the leverage ratio is higher than the futures hedging strategy.

3. Fault tolerance space

The income option fee is what the seller needs to do, which makes this strategy have certain fault-tolerant space. When investors have enough funds, they can bear the pressure when the market fluctuates in an unfavorable direction, so that when the market fluctuates in an unfavorable direction, investors can reduce losses and even maintain a small profit.