2. Besides futures hedging, there are also hedge funds, hedge arbitrage and foreign exchange hedging. These are all means or techniques to reduce risks.
It is a form of investment fund, which means "risk hedge fund". Hedge funds use various trading methods to hedge, transpose, hedge and hedge to make huge profits. These concepts have gone beyond the traditional operation scope of preventing risks and ensuring benefits. In addition, the legal threshold for launching and establishing hedge funds is much lower than that of mutual funds, which further increases their risks.
1. The English name of HedgeFund is Hedge Fund, which means "hedge fund" and originated in the United States in the early 1950s. The purpose of its operation is to use financial derivatives such as futures and options, as well as the operational skills of buying and selling different related stocks and hedging risks, which can avoid and resolve investment risks to a certain extent.
2. After decades of evolution, hedge funds have lost the original connotation of risk hedging, and hedge funds have become synonymous with a new investment model. That is, based on the latest investment theory and complex financial market operation skills, we should make full use of the leverage of various financial derivatives to undertake high-risk and high-yield investment models.
3. The so-called hedging, from the perspective of finance, refers to the investment that deliberately reduces the risk of another transaction. Futures hedging is a way to reduce trading risks while still making profits in trading. Usually, hedging is an investment in which two markets are interrelated at the same time, the trend direction is just the opposite, the profit and loss cancel each other out, and the number of contract futures is relative. Market correlation, in essence, refers to the correlation between market supply and demand that affects the prices of two different commodities. If the relationship between supply and demand fluctuates, it will also affect the prices of these two commodities, and the price trends are roughly the same.
4. The trend direction is just the opposite, which essentially refers to the opposite relationship between two transactions, so that no matter which direction the price moves, there will always be a profit and a loss. Of course, to break even, the number of two transactions needs to be established according to the fluctuation range of their respective prices. Generally speaking, the number is similar.