Group 1 - The core formula for hedging with leverage is "Number of contracts needed for hedging = Spot market value ÷ (Futures contract value × β coefficient)" [1] - Systematic risk hedging example: Holding a 5 million yuan portfolio of CSI 300 stocks (β=1) requires selling approximately 4 futures contracts to hedge against a 10% index drop, needing only 480,000 yuan margin with 10x leverage [1] - In June 2025, a consumer portfolio increased its hedging position from 5 to 6 contracts, successfully offsetting excess losses during a 3% market decline [1] Group 2 - Basis arbitrage with leverage: When futures are over 1% (far-month contract price higher than spot), shorting futures while buying spot can amplify arbitrage profits using 5x leverage [2] - In July 2025, an institution used 1 million yuan margin to control 5 million yuan in contracts, achieving a profit of 60,000 yuan (6% return) after one month as the basis converged [2] - Risk management is crucial; if basis volatility increases (e.g., widening to 3%), leverage should be reduced to below 3x to avoid significant losses [2]