What is the definition of hedging? Hedging refers to the behavior of foreign exchange traders to avoid or eliminate the risk of exchange rate changes through spot foreign exchange transactions and forward foreign exchange transactions. Hedging is only to eliminate or avoid foreign exchange risks and minimize the losses caused by foreign exchange risks, not to profit from foreign exchange risks. In this way, ruby has a high value preservation, and the price of ruby is affected by the quality of ruby and the relationship between supply and demand in the market, while the ruby market is on the rise. With the continuous reduction of output, the price of ruby is expected to rise further.