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What is the concept of imperfect hedging between futures and spot?
The so-called hedging, from the perspective of finance, refers to the investment that deliberately reduces the risk of another transaction. Futures hedging is a way to reduce trading risks while still making profits in trading. Usually, hedging is an investment in which two markets are interrelated at the same time, the trend direction is just the opposite, the profit and loss cancel each other out, and the number of contract futures is relative.