Using the futures market to hedge is helpful to the smooth production activities of enterprises in a certain sense. Accurately speaking, the function of the futures market is to find prices and avoid risks, which is helpful to guide futures operations and avoid price risks in operations.

Extended supplement:

Three basic functions of futures market

1, to avoid risks, the futures market can trade in both directions, which is conducive to hedging the risks of existing assets.

2. Price discovery reflects the future trend of stock index. Because there are many participants in stock index futures trading, the market price reflects the comprehensive views and information of all parties on price expectations. The relatively low cost of margin trading and T+0 trading system improves the price discovery function of futures market.

3. Asset allocation, promoting the asset redistribution of social idle funds in various listed companies and industries, increasing market liquidity and improving the efficiency of capital use.