It is said that many people have heard of hedge funds, but they don't know about hedge funds. So, n, what is a hedge fund?

What is a hedge fund?

Hedge fund refers to a financial fund whose purpose is to make profits after financial derivatives such as futures options and financial options are merged with financial derivatives.

This is a way of fund investment, which means "risk against hedge stock funds". Hedge funds use a variety of trading methods to hedge, swap, hedge and make huge profits. This definition has already gone beyond the traditional practical operation level of avoiding risks and ensuring profits. In addition, the threshold of laws and regulations for launching and opening hedge funds is much lower than that of mutual equity funds, which further increases their risks.

How hedge funds are bought and sold:

1, stock index futures

Hedging of stock index futures refers to the personal behavior of buying and selling stock index futures and individual stocks in the spot market, or buying and selling bulk index contracts with different maturities and different (but similar) types to obtain the difference. Hedging arbitrage of stock index futures can be divided into cash hedging, inter-period hedging, inter-regional hedging and cross-category hedging.

2. Futures trade

Similar to the hedging of stock index futures, futures trading has hedging countermeasures, such as buying or selling a stock index futures contract, selling or buying another related contract, and forcibly closing the other two contracts of a certain R. The trading method is similar to spot arbitrage, but spot arbitrage is to buy (or sell) physical objects in the spot market and sell (or buy) stock index futures contracts in commodity futures; However, hedging arbitrage only trades commodity futures contracts and does not involve the spot market. There are four main types of commodity futures arbitrage: cash hedging, cross-period hedging, cross-sales market hedging arbitrage and cross-category hedging arbitrage.

3. Statistical analysis of hedging

Different from zero-risk hedging, statistical analysis hedging is a risky hedging arbitrage, which uses the regularity of syndrome and patient's historical time statistical analysis to carry out hedging arbitrage, and its risk depends on whether there is such regularity of historical time statistical analysis in the future.

The key idea of statistical analysis of hedging is to find a variety of investment types of the project (individual stocks or futures trading, etc.). ) has the best correlation, and then find out the long-term equilibrium correlation (cointegration correlation) of each type of investment project. When a pair of types of spreads (the residuals of algebraic sons) shift to a certain level, they begin to open positions-buying those that are relatively undervalued and shorting those that are relatively undervalued until the spreads return to balance. The topics of statistical analysis hedging include stock matching transaction, stock index hedging, securities lending hedging and foreign exchange trading hedging.

4. Option hedging

Option, also called decision-making power, is a derivative financial instrument, which is basically caused by futures trading. The essence of option is to separate the control right and responsibility in the financial industry and price it, so as to urge the buyer of control right to perform its control right in R period, and the responsible party must perform it. When buying and selling options, the buyer is called the buyer and the seller is called the seller. The buyer is the buyer of the control right, and the seller is the obligor who must fulfill the buyer's control right.

General investment advice of hedge funds;

1. long position, that is, buying and selling stocks separately, can be net long position or net short position.

2. Neutralization of the sales market, that is, buying stocks with slightly lower stock prices and selling stocks with higher stock prices.

3. Share conversion arbitrage, that is, buying convertible bonds with slightly lower prices and shorting positive stocks.

4. Global macro-economy, that is, analyzing the financial system of national economic development from top to bottom, and trading according to political and economic malignant events and key development trends.

5. Management methods Futures trading, that is, holding long positions in various financial derivatives.

6, short, that is, buy stocks as a short-term investment, that is to say, short the stocks bought in a short time, and then buy them back when their stocks fall to obtain the price difference.

7. Lending leverage

"Lending leverage" has many meanings in the investment field. The basic meaning of its English word is "lever effect". Generally speaking, it refers to the basic expansion of self-owned assets with the help of bank credit.