At the same time, in a market loss, the loss amount is roughly equal to the profit amount, thus achieving the purpose of avoiding risks.
Because hedging transactions are based on the risks brought by the actual or expected price changes of foreign exchange assets of traders, there are two types of hedging transactions:
The first is to hedge the existing spot position; The second is to maintain the value of recent spot positions.
The specific operating principle is that futures contract prices are different in different months. Usually, the far-month contract rises sharply, and the recent-month contract rises slightly. When they fell, contracts in recent months fell sharply, and contracts in far months fell slightly.
According to the principle that long and short futures can make profits. We can do this: buy a long-term contract and buy a short-term contract. In this way, hedging occurs. The far-month contract rose 800 points, and the recent contract rose 600 points and fell 600 points. 200 yuan profit after hedging. In fact, at this time, you can also choose to leave with the profit.
Hedging means that the price trend of a futures product will rise for a long time, so this operation mode can be adopted. or vice versa, Dallas to the auditorium
What are the skills of futures hedging?
Futures hedging specifically refers to the trading activities that take the futures market as the place to transfer the price risk and the futures contract as the temporary substitute for the future purchase of goods in the spot market to provide insurance for the prices of goods to be purchased in the future.
1, arbitrage by technological differences
The technical performance of futures arbitrage trading skills is mainly reflected in K-line (and its combination) and moving average system, which is more effective. In one case, among varieties of the same type (with high correlation), if variety A goes online in the short and medium term, the moving average system diverges in the same direction, and another variety B interweaves with the short and medium term moving average system, the arbitrage strategy of "more A and less B" should be adopted. For example, the situation between soybean meal and soybean oil varieties from April to May in October1April.
On the other hand, if the K-line (combination) has a large proportion of positive K-line or positive K-line in a certain period of time, but the variety B does not have this phenomenon, or even the negative K-line accounts for a large proportion, then the arbitrage strategy of "multiple A and empty B" should be adopted.
2. Arbitrage opportunities brought by warehouse receipt restrictions in the futures market.
The futures market has the concepts of distribution system and warehouse receipt. Warehouse receipts are "guaranteed (quality and grade) goods", which have not been delivered, but are ready to be delivered and registered and stored at the place designated by the exchange. At the same time, the exchange also has certain provisions on the validity of various warehouse receipts, especially for commodities with short shelf life, such as agricultural products (quotation, consultation) or chemical products.
3. Arbitrage opportunities in the process of changing the main contract
Futures arbitrage trading skills When the capital market begins to turn to the next main contract in a distant month, the price of futures is often driven by short-term irrational factors due to the influence of funds, which leads to irrational changes in the price difference between the current main contract and the next main contract. There are usually short-term arbitrage opportunities at this time.
4. Arbitrage opportunities brought by the difference between supply and demand of futures contracts in the current month.
The change of futures price pattern is mainly determined by the relationship between supply and demand, and the futures price of a specific contract is affected by the relationship between supply and demand in the month to which the contract belongs. As far as agricultural products are concerned, because the transfer of the main contract is generally four months apart, the relationship between supply and demand in the current main contract month may be very different from that in the future.
Of course, under the background of this specific fundamental difference, the actual operation of arbitrage opportunities is not blindly "chasing up and killing down", but a rhythmic grasp and intervention combined with technical analysis.
In short, the concept of futures arbitrage trading skill is no longer narrow, and its application is more and more extensive. In particular, its characteristics of low risk and high return are favored by investors. However, in the arbitrage operation, investors must recognize the misunderstanding and learn to use some futures arbitrage trading skills to make the investment more stable and in-depth.