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Friends who are familiar with stock trading should know that buying stocks in the A-share market is done by hand, with 100 stocks in one hand. So, in foreign exchange trading, "lots" are also a unit of quantity that represents the size of your purchased position. So what does one hand of currency represent?
The operation of hedging is achieved by investors engaging in commodity trading activities in opposite directions and equal quantities in the futures and spot markets. This method of operation can compensate or offset losses in one market by losses in another market.
The basic types of hedging can be divided into three types: simple buy or sell hedging, selective hedging, and cross variety combination hedging. By comparing and analyzing these three hedging methods, we can gain a deep understanding of relevant knowledge.