Hedging foreign exchange transactions refer to hedging foreign exchange transactions conducted by banks, companies, enterprises and individuals to prevent the risks caused by adverse exchange rate changes on their exposed exchange rate positions. Hedging foreign exchange transactions mainly include forward foreign exchange transactions _ swap transactions and foreign exchange derivatives transactions. Risks that Chinese foreign trade enterprises may encounter when choosing foreign exchange hedging: international enterprises mainly use foreign exchange derivatives to hedge foreign exchange risks when managing foreign exchange risks. In the current environment, there are not many foreign exchange derivatives that domestic foreign trade enterprises can use to manage foreign exchange risks. Moreover, the management fees charged by banks are particularly high, which hinders the development of small foreign trade enterprises. Now people are not familiar with financial derivatives, and there are some prejudices and fears. Moreover, after the financial crisis, several liquidation points were conducted, and the conclusion was that innovative financial derivatives were the main cause of the crisis. From the market performance after the financial crisis, it can be seen that some large capital companies in the United States are insolvent and declare bankruptcy. The impact of this financial crisis is very serious. In the turbulent global economic market, we can always find innovative financial derivatives. Objectively speaking, the original idea of creating innovative financial derivatives is to manage market risks. If our foreign trade enterprises can correctly use innovative financial derivatives, it will produce very good results and its security is also very high. Most enterprises in China don't understand the concept of hedging enough and have short contact time. There are still many misunderstandings about the concept of hedging. They think that "hedging" will lead to the possibility of losses, so they dare not do it. In fact, we need to change this concept. Hedging is the guarantee of future cash flow, which can increase the value of enterprises' funds and improve their income.