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The hedging function of futures market can help producers and operators to eliminate most market price risks. Is this sentence correct?
The hedging function of futures market cannot help producers and operators to eliminate most market price risks. The price trend in the market has always existed and will not be eliminated. The futures market can only play the role of avoiding operational risks.

At the same time, there are risks for enterprises to participate in the investment futures market, which can avoid operational risks to a certain extent, but can not help producers and operators to eliminate market price risks.

Extended supplement:

1. The basic functions of the futures market include price discovery, risk aversion and asset allocation.

2. Futures spot is affected by the same economic factors and the relationship between supply and demand, and often shows the same price trend. As the maturity date of futures contracts approaches, prices tend to converge. Therefore, investors can avoid risks by hedging, that is, reverse operation in the stock market and stock index futures market. It provides a tool for hedging risks for production and operation.