In essence, it is a freight risk management tool. This method of avoiding the risk of futures options is called hedging. Hedging is the driving force of the futures market. Both agricultural products futures market and metal and energy futures market are derived from the spontaneous trading behavior of buying and selling forward contracts when the spot price fluctuates greatly in the production and operation process. Freight hedging means that freight is regarded as a commodity, and shipowners or shippers buy insurance for the operation link through FFA market to ensure its stable operation and sustainable development. Similarly, like all futures option products, FFA is an arbitrage tool, which is exactly what those financial institutions like. At present, the participants in FFA market mainly include the following four types of companies: 1. Shipping companies: shipping companies and operators engaged in international bulk cargo transportation. For example, KLAVENESS in Norway, NORDEN in Denmark, OLDENDORFF in Germany, CETRAGPA in France, DEIULEMAR in Italy, NAVIOS/OCEANBULK in Greece, PCL/IMC in Singapore, KOREANLINE/STXPANOCEAN in South Korea, etc. 2. Traders: trading enterprises engaged in the import and export of bulk commodities such as ore, coal and grain. For example, Louis Dreyfus, Cargill, Bunky, ADM, etc. It is the four kings of the world grain and agricultural products industry. They are good at dancing in commodity futures exchanges such as CBOT, and naturally become pioneers in the derivatives market of sea freight futures; 3. Producers: production enterprises engaged in the consumption of bulk raw materials such as ore smelting, grain processing, electricity and oil refining. For example, BHP Billiton and RIOTINTO, the world's mining giants, RWE, the largest energy company in Europe, KOCHCARBON in Britain, and Enron, the largest energy company in the United States, went bankrupt at 200 1; 4. Financial companies: various investment banks, hedge funds, futures companies, etc. For example, Goldman Sachs, Morgan Stanley, Societe Generale, Macquarie Bank of Australia, Merrill Lynch, etc.