For example, you are a copper producer, and the current market price is 50,000/ton. You expect to sell it at this price again next year. You can sell next year's copper in the futures market at a price of 50 thousand/ton in advance. By next year's delivery date, direct delivery will be fine. If the copper price drops to 40,000/ton next year, your selling price will still be 50,000/ton, which guarantees your basic profit. Of course, if the copper price rises to 60,000/ton next year, you may reduce your income. But its existence offsets the impact of price fluctuations on you.
On the other hand, if you use copper as raw material. You can buy next year's copper futures at the current market price to ensure that your purchase cost is stable. All you have to do is pay a small deposit and pay the full amount before the delivery date next year.
As for foreign exchange, authoritative economists still think that its fluctuation is untraceable, so they suggest. . . . . .
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