In July, the spot price of soybean was 20 10 yuan per ton. A farm is satisfied with the price, but soybeans will not be sold until September, so the farm is worried that the spot price may fall by then, thus reducing income. In order to avoid the risk of future price decline, the farm decided to trade soybean futures on Dalian Commodity Exchange. The transaction is as follows:

Spot market futures market

In July, the soybean price was 20 10 yuan/ton, and the transaction was 10 lot. September soybean contract is 2050 yuan/ton.

In September, we sold 100 tons of soybeans at the price of 1.98 yuan/ton and bought 10 lot. September soybean contract closed at 2020 yuan/ton.

The price difference is 30 yuan/ton, with a total loss of 3,000 yuan and a profit of 30 yuan/ton, with a total profit of 3,000 yuan.

Hedging result -3000+3000=0 yuan.

Note: 1 hand = 10 ton.

From this example, we can draw the following conclusions: first, because the trading order in the futures market is to sell first and then buy, this example is selling hedging. Second, a complete selling hedge actually involves two futures transactions. The first is to sell futures contracts, and the second is to sell the spot in the spot market and buy the original position in the futures market. Third, through this set of hedging transactions, although the spot market price has changed adversely to farms, the price has dropped by 30 yuan/ton, resulting in a loss of 3,000 yuan; However, trading in the futures market made a profit of 3,000 yuan, eliminating the impact of adverse price changes.

Step 2 buy a hedge

In September, an oil factory expects to need raw soybean 1 100 tons in October. At that time, the spot price of soybean was 20 10 yuan per ton, and the oil factory was satisfied with the price. It is predicted that the soybean price may increase by 5438+065438+ 10 in June. Therefore, in order to avoid the risk of rising raw material costs caused by rising prices in the future, the oil factory decided to conduct soybean hedging transactions in Dalian Commodity Exchange. The transaction is as follows:

Spot market futures market

In September, the soybean price was 20 10 yuan/ton. Buy 165438+ 10 monthly soybean contract 10 lot, and quote 2090 yuan/ton.

/kloc-0 bought1100 tons of soybeans at a price of 2050 yuan/ton in October and sold10 lot of soybeans at a price of 2 130 yuan/ton.

The price difference is 40 yuan/ton, with a total loss of 4,000 yuan and a profit of 40 yuan/ton, with a total profit of 4,000 yuan.

Hedging result -4000+4000=0 yuan.

Note: 1 hand = 10 ton.

From this example, we can draw the following conclusions: first, because the trading order in the futures market is to buy first and then sell, this example is to buy hedging. Second, a complete buy hedging also involves two futures transactions. The first is to buy a futures contract, and the second is to buy a spot in the spot market and sell the position originally held by the hedger in the futures market. Third, through this set of hedging transactions, although the spot market price has changed adversely to the oil plant, the price has increased by 40 yuan/ton, so the cost of raw materials has increased by 4,000 yuan; However, the trading in the futures market made a profit of 4,000 yuan, thus eliminating the impact of adverse price changes. If the oil factory does not hedge, he can get cheaper raw materials when the spot market price falls, but once the spot market price rises, he must bear the losses caused by it. On the contrary, he hedged in the futures market, although he lost the profit of favorable changes in the spot market price, but he also avoided the loss of unfavorable changes in the spot market price. Therefore, hedging avoids the risk of price changes in the spot market.