This chapter discusses different hedging strategies using futures. It explains that a perfect hedge fully eliminates price uncertainty while an imperfect hedge only reduces it. A long hedge is used when prices are expected to rise, while a short hedge hedges against falling prices. Basis risk exists when the asset and futures contract do not match in terms of underlying asset, timing or quantity. The hedge ratio determines the optimal number of futures contracts to use based on the volatility of the asset and futures contract prices.