Hedging: Traders cooperate with the trading in the spot market to buy or sell futures contracts with the same variety and quantity as those traded in the spot market, but in the opposite direction, so as to compensate the actual price risk brought by the price change in the spot market by selling or buying the futures contracts at some future time.

Speculation: Speculation refers to the trading behavior of seizing the opportunity according to the judgment of the market and making use of the price difference in the market to profit from it.

It should be said that the fundamental difference between the two lies in the different ways of making profits.

Hedging should be said to be a steady profit.

Speculation: Unilateral profiteering may lead to large losses or large gains.