1. Spot hedging is also called arbitrage trading. Simply put, it is to make a portfolio, and investors can buy up and down at the same time. The result is that no matter whether the market goes up or down, it always makes a profit while losing money. As long as the profit rate is greater than the loss rate, the whole can be profitable, and this hedging trading model is absolutely legal, which is more conducive to silver and gold investors to trade. It is a trading measure to avoid the investment loss of financial products. The most basic way is to buy spot and sell futures or sell spot to buy futures.

2. Hedging transactions refer to two transactions related to the market, with opposite directions, the same quantity and breakeven. The opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter what direction the price changes, there is always a profit and a loss. Of course, in order to make ends meet, the number of two transactions must be determined according to the range of their respective price changes, and the number is roughly equal.