The hedging function of futures trading is mainly realized through hedging trading. Hedging refers to buying or selling a certain financial asset in the spot market, and at the same time conducting futures trading with the same variety, quantity and term as the spot trading, but in the opposite direction, so as to make up for the loss of another market with the profit of one market at a certain moment in the future, thus avoiding the risk brought by the change of spot price and realizing hedging. There are two basic types: first, long hedging, that is, traders buy futures in the futures market first, so that buying in the spot market will not cause economic losses; The second is short hedging, that is, traders sell futures in the futures market first, and when the spot price falls, they use the profits of the futures market to make up for the losses in the spot market, thus achieving the purpose of hedging.