There are various methods and means

In the general securities market, risks can be hedged through futures hedging. For example, the spot on hand corresponds to the value of the futures contract* and must have a proportional coefficient

< p>This proportional coefficient is an empirical value, which generally leaves an exposure, that is, incomplete hedging.

Complete hedging is similar to buying long Harvest or Huatai-PineBridge 300 ETF, buying a spot futures contract value, and then shorting stock index futures to hedge.

There are also other types, such as inter-temporal, cross-variety, and cross-exchange hedging in commodity futures.

For example, if you are speculating, after shorting soybeans, you feel that it is not safe, or soybeans simply have no direction, but you want to keep a short soybean order, then you can go long soybean meal or soybean oil. If you want to be completely covered To ensure that, you need to hedge according to the soybean crushing ratio, which is generally 10 for soybeans, 7 for soybean meal, and 3 for soybean oil.

Secondly, risks can be hedged through various methods such as industrial chain or fundamentals.

I won’t go into details