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Can you give an example of how to do futures short hedging?

If the futures are short, it means that the company has long spot, that is to say, in order to prevent the loss caused by the price drop, it is necessary to hedge the futures by shorting in the futures market. If the spot price in the spot market rises on the maturity date, the spot held by the company will bring more profits, which will be used to make up for some or all of the losses caused by short selling in the futures market.

If the spot market price falls at maturity, the empty orders in the futures market will bring profits, and the loss of the spot market price drop can be partially or completely compensated by the profits in the futures market.

This is the short position of futures, that is, the hedging of spot bulls.

Because the closer the futures and spot are to the delivery date, the closer the prices are.