Hedge funds mostly use financial derivatives and tools and short selling to buy and sell, and strive to seize profit opportunities in both sharply rising markets and sharply falling markets. The investment objectives of hedge funds are vague. In addition to traditional securities, the objects include futures, options and various financial derivatives and tools. More financial derivatives and instruments and short selling are used for trading. Invest in diversified assets and use hedging technology. If you don't short, you must use financial leverage, such as financing from banks, to increase your bets.

Fund managers of hedge funds have great flexibility in operation. Therefore, hedge fund managers can make use of almost all legal means in the market to make profits and get high returns. In addition to the traditional long-term holding of securities commodities, the common trading strategies are: 1, shorting securities or commodities. 2. Buying and selling stock indexes and stock options, futures or other financial derivatives and tools. 3. Invest with borrowed funds, increase investment, and achieve the goal of double return. 4. Use hedging and other methods to earn low-risk returns.