1. The price of 304 scrap is pretty volatile as it is inevitable to be affected by the fluctuation of nickel price and currency rate which are main factors of the pricing of 304 scrap.
2. In order to accomplish the ever-earning transactions, FUTURES HEDGING is recommended to lock in a certain price and guard against the possibility of falling prices.
3. The simultaneous trade contracts of 304 scrap, Nickel futures and Currency futures will guarantee the margin of trade since 304 scrap price and Nickel futures largely offset each other with gain and loss.