1. The concept of hedging: \x0d\ Hedging refers to the trading activities that use the futures market as a place to transfer price risk, use futures contracts as a temporary substitute for buying and selling commodities in the spot market in the future, and sell commodities after buying now or insure the prices of commodities bought in the future. \x0d\ x0d \ 2。 Basic characteristics of hedging: \ x0d \ The basic method of hedging is to buy and sell the same commodity in both the spot market and the futures market, that is, to buy and sell the same amount of futures in the futures market at the same time. After a period of time, when the price changes make the spot trading gain or loss, it can be traded in the futures market. Therefore, hedging mechanisms are established between "now" and "period" and between short-term and long-term to minimize price risk. \x0d\ x0d \ 3。 Logical principle of hedging: \ x0d \ Hedging can be carried out because the main difference between futures and spot of the same specific commodity lies in the different delivery dates, and their prices are influenced and restricted by the same economic and non-economic factors. Moreover, the futures contract must be delivered in kind when it expires, which makes the spot price and futures price converge. In two related markets, the reverse operation will inevitably produce the effect of mutual cancellation. \ x0d \ x0d \ 20101.2, a petrochemical engineering company under China Petrochemical Co., Ltd., is mainly engaged in various polypropylene and polyethylene products of China Petrochemical Co., Ltd., with an annual sales volume of nearly 30,000 tons. As an intermediate trader, it is urgent to take corresponding hedging schemes to protect enterprises, because they have to bear the risks of raw material price purchase in the upstream and raw material sales price in the downstream. After receiving the application, the author made an in-depth analysis of the macroeconomic environment, LLDPE industrial chain and the fundamental factors of supply and demand, and issued a LLDPE selling hedging plan for it. According to the plan, the rising sustainability promoted by abundant liquidity at that time was not strong, and the follow-up strength was in doubt. At present, the price of plastics is at a high level, and once there is a downward trend in the market outlook, there is more room below. It is suggested that with its current position, it can consider establishing a hedging position appropriately to avoid the losses that may be brought to the enterprise by the fluctuation of spot price. After the introduction of the plan, LLDPE continued to rise strongly, and soon entered the planned warehouse opening area, then accelerated to the top of 1 14280 yuan on1October 9, and then began to fall rapidly. 165438+ will reach 1 1640 at the end of 10. In this case, due to the sharp drop in spot prices, the inventory of enterprises should have suffered great losses. However, due to the timely establishment of selling hedging for the company's inventory in the futures market, in the process of the sharp drop in LLDPE price, not only the loss caused by the drop in spot price was avoided, but also an additional income of 768,000 yuan was obtained, and the hedging effect was very ideal. It should be noted that not all hedging operations can obtain additional benefits.