Futures price is a reflection of forward expected price. Hedging is one of the functions of the futures market. If it is a sales enterprise, it can sell and hedge through the futures market. If it is a purchasing enterprise, it can purchase and hedge through the futures market. For example, if you are a sales enterprise and the futures market reaches your expected profit, you can sell it to preserve the value and lock in the profit; On the contrary, if you are a sales company, you can sell through the market. Suppose your purchase cost is 10000 yuan, and now the market price is 1 1000 yuan. You think this profit is satisfactory. You can sell hedging and hedging in the futures market. No matter whether the futures market goes up or down, you can lock in your profits, because the closer the delivery month is to the delivery month, the closer the market price is to the market price. You sold it, the price still fell, your futures made a profit, and the spot price also fell, and now the goods are lost. Futures profits can offset spot losses and realize hedging function. On the contrary, if the futures price rises and the futures lose money, then the spot will increase the profit, and the offset will still be the expected hedging price.

I may not know. Please contact me directly if you need any help. I used to have a company that was mainly responsible for hedging business. I hope it will help you.