1. What is the risk of hedging stocks?
Risk hedging refers to a risk management strategy to offset the potential risk loss of basic assets by investing in or buying some assets or derivative products that are negatively related to the fluctuation of basic assets and income.
Second, how to operate?
1, you can rationally allocate stocks and make a good investment portfolio of stock funds. Configure defensive sectors such as liquor, medicine and gold to offset some risks when the market is not good;
2. Hedging risk futures through stock index futures. When the market falls all the way, the trend is not good, and the stocks in hand are still held, then empty stock index futures can be used, and the money lost in the stock market will make up for a department through the profit of stock index futures, which is itself a shock absorber of the stock market.
3. If the stock market risk can be predicted relatively, and the systemic and fundamental risks are unfavorable, you can consider temporarily taking profit and selling. Wait until the market picks up or the next round of investment has room for upward adjustment. Investment must know how to stop loss in time and not be too greedy, otherwise it may be stuck in the capital market.
4. Gold (or gold stocks) with a certain negative correlation with the market can be used as a hedging tool. However, if the market turns empty and gold concept stocks are at a high level, there may be a risk of falling with the market. The international gold price is the most susceptible variety to all kinds of news. Although it is sometimes negatively related to the market, it is not so highly consistent, and sometimes the trend is even consistent, so hedging will form double risks.
The basic principle of stock hedging is to reduce the risk and reduce the income at the same time, that is, to buy a foreign currency at the same time and hedge the risk with the foreign currency that has been sold, so we should master the operation of hedging the stock risk.