Traditional Culture Encyclopedia - Traditional customs - What does hedging in futures mean?

What does hedging in futures mean?

Hedging in futures refers to arbitrage. Futures hedging refers to the futures market as a place to transfer price risk, and futures contracts as a temporary substitute for buying and selling commodities in the spot market in the future, so as to insure the prices of commodities that you need to buy in the future.

Tips:

1. The above instructions are for reference only and do not make any suggestions.

2. All investment in financial derivatives is risky, which requires investors' financial risk management ability and is not suitable for investors without professional financial knowledge. In addition to basic financial knowledge, investors should also control their risk tolerance and not invest blindly.

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