Hedge funds are funds that use hedging transactions. It refers to the financial fund with the purpose of profit after the financial derivatives such as stock index options and financial options are combined with financial derivatives. Because our A-share market can only buy up, when fund managers predict the stock market decline, hedge funds may short financial derivatives and make a profit.

What does hedge fund mean?

Stock index futures hedging and commodity futures hedging are the most commonly used trading methods. Among them, the symmetry of stock index futures trading refers to the behavior of using improper prices to earn the difference in the stock index futures trading market, including term hedging, period hedging, cross-market hedging and cross-variety hedging. Commodity futures hedging is also similar to stock index futures hedging, which refers to selling or buying another related contract under the premise of buying and selling a stock index futures contract, and closing two contracts at the same time within a certain period of time. Hedging means buying stocks in A-shares, but I am worried about the stock market plunging in the future, so I make a corresponding number of empty orders in the futures market or the options market, so that even if the stock market falls in the future, the backhand trading order can be the same as the buying order.