Do you really understand what hedging trading strategy is? The significance of hedging strategy lies in removing certain risks that we do not want to take on! So as to only retain the risks we want. The broad scope of hedging strategies includes market neutrality, ETF arbitrage, event arbitrage, and fixed income arbitrage. The common purposes of long short hedging transactions can be divided into four categories: Contract hedging: In contract trading, players can open multiple and short orders simultaneously. For example, buying Bitcoin contracts while selling Ethereum contracts to hedge against market volatility. The core of this strategy is to utilize the price differences between different assets, so that even if the market direction is judged incorrectly, losses can be reduced through opposite operations. Exchange hedging: Trading the same asset between different exchanges, using price differences to earn price differences without involving the withdrawal process, avoiding the issues of withdrawal time and cost in brick and mortar strategies. Spot and contract hedging: While holding a certain currency spot, you are worried about a recent sharp drop and washing up the market, but also afraid of returning to the main uptrend. By doing the opposite in the contract market, such as holding BTC spot while shorting BTC in the contract market, you can maintain asset value stability regardless of market fluctuations. Arbitrage hedging hedging: For example, if we choose to place a new order on an exchange, but BNB is expected to decline, we can open a hedging short order to ensure that BNB prices do not suffer losses and earn profits from new orders.