1 thought on “What does hedge fund mean?”

  1. As a type of hedge fund, as a fund, it has always had a sense of mystery. Other funds are a combination of stocks or bonds.

    . What is hedge fund?
    The answer is: funds that use hedge trading methods are called hedge funds, also known as insurance shelter or set -up value preservation funds. It refers to financial funds that combine financial derivatives such as financial futures and financial options with financial instruments. It is a form of investment funds, which means "funded fund". Hedge funds use various transaction methods to make huge profits with various transaction methods for hedging, replacement, clogs, and sets. These concepts have exceeded the category of traditional preventive risks and guarantee income operations. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual benefit funds, which further increases the risks

    . Talk about what are the risks of stock transactions. Generally speaking, there are two types of stock transactions
    1. It is the risk of stock itself. , Disaster, War and other news can be understood as the trend of the broader market index. This part of the risk is what hedge funds want to avoid.

    . How does the specific hedge fund operate?
    The operation of hedge funds is divided into two types, arbitrage or hedging strategies. The arbitrage is mainly based on the price of the stock index futures and the departure value of the broader market. We mainly discuss hedging strategies here. The strategy is very simple. When buying stocks, air index futures, or shares of other companies in the same type of stocks to avoid industry fluctuation risks and major environmental volatility risks. As long as this stock performance is better than other companies in the same industry, they will You can make money in the rise of the stock market.

    . Nowadays, people's understanding of hedge funds
    The people generally believe that hedge funds are actually based on the latest investment theory and extremely complicated financial market operation skills, make full use of various financial derivatives production products The effectiveness of leverage, which is responsible for high -risk and pursuit of high income investment models.

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