Swap transaction refers to a transaction form in which both parties agree to exchange certain assets with each other in a certain period in the future.

More precisely, he said, a swap transaction refers to a transaction in which both parties agree to exchange cash flows with each other in a certain period in the future. Common ones are currency swap and interest rate swap.

2. Hedging: refers to buying (selling) futures contracts with the same quantity as the spot market, but in the opposite direction, so as to compensate the actual price risk caused by the price change in the spot market by selling (buying) futures contracts at some future time.

Divided into:

(1) Buying hedging: (also known as long hedging) is to buy futures in the futures market, and to guarantee short positions in the spot market with long positions in the futures market, thus avoiding the risk of rising prices.

For example, an oil factory plans to buy 65,438,000 tons of soybeans in March two months later. At that time, the spot price was 2200 yuan per ton, and the futures price in May was 2300 yuan per ton. Worried about rising prices, the factory bought100t soybean futures. In May, the spot price really rose to 2400 yuan per ton, while the futures price was 2500 yuan per ton. The factory then bought the spot, with a loss of 0.02 million yuan per ton; At the same time, the futures were sold, and the profit per ton was 0.02 million yuan. The two markets break even, effectively locking in costs.

(2) Selling hedging: (also known as short hedging) is to sell futures in the futures market, with short positions in the futures market to ensure long positions in the spot market, thus avoiding the risk of falling prices.

Example: In May, the supply and marketing company signed a contract with the rubber tire factory to sell natural rubber 100 tons in August, and the futures price in August was RMB 0.25 million per ton/kloc-0. The supply and marketing company was worried about falling prices, so it sold 100 tons of natural rubber futures. In August, the spot price dropped to per ton 1. 1 ten thousand yuan. The company sold the spot and lost 0. 1 ten thousand yuan per ton; He also bought1.100 tons of futures at a price of 0. 1.5 million yuan per ton, with a profit of 0.1.5 million yuan per ton. The two markets break even, effectively preventing the risk of falling natural rubber prices.

Step 3 hedge

That is, buying and selling.

Hedging transaction refers to buying and selling a contract with the same quantity, the same variety but different terms in the forward market of futures options at the same time, so as to achieve the purpose of arbitrage or risk avoidance.

Hedge fund, meaning "risk hedge fund", 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.

In the most basic hedging operation, the fund manager buys a put option with a certain price and term after buying a stock. The utility of put option is that when the stock price falls below the option-limited price, the holder of seller option can sell his stock at the option-limited price, thus hedging the risk of stock decline. In another hedging operation, the fund manager first chooses a bullish industry, buys several high-quality stocks in this industry, and sells several inferior stocks in this industry according to a certain proportion. The result of this combination is that if the industry is expected to perform well, the increase of high-quality stocks will exceed other stocks in the same industry, and the gain from buying high-quality stocks will be greater than the loss from shorting inferior stocks; If the expectation is wrong, the stocks of this industry will fall instead of rising, then the decline of the stocks of poor companies will be greater than that of high-quality stocks, and the profit of short selling will be higher than the loss caused by the decline of buying high-quality stocks. Because of this mode of operation, the early hedge fund can be said to be a form of fund management based on the conservative investment strategy of hedging.

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.

I don't know which one you want to say last. Please add some explanations when you think of it.