Hedging is translated from the English word "Hedge" and can also be used as hedging. Specifically, when someone owns asset A and faces the risk of depreciation, he can sell another asset B, and as long as there is a positive correlation between asset A and asset B, they can hedge. Hedging is a kind of futures trading aimed at avoiding spot risk. It means that the operators or traders related to the spot market buy or sell a certain number of spot varieties in the spot market, and at the same time sell or buy futures contracts with the same spot varieties, the same value but opposite confidence, so as to avoid the risks at a certain time in the future by closing positions in the spot and futures markets at the same time (you can understand it as funds).