The Theory and Method of Futures Combination Hedging Step by Step
期货市场逐步组合套期保值的理论与方法

In this paper, by the analyses about the strategy of the combination hedge in futures markets and its risk, we get least squares estimation of the hedge ratio and its risk. We study the problem about futures combination hedging step by step. For given spot, the futures for a combination hedge are found out progressively. We get the theory and method of futures combination hedging step by step, and improve the effect of combination hedge. In the meantime, we provide a useful method of combination hedge for the investor.