This is a way to reduce business risks while still making profits from investment. General hedging is to conduct two transactions at the same time, both related to the market, in the opposite direction, with the same amount and breakeven.

Hedge funds are financial derivatives such as financial futures and financial options, which are combined with financial instruments to make profits. It is a form of investment fund, which means "risk hedge fund". Hedge funds use various trading methods to hedge, transpose, hedge and hedge to make huge profits.

Market correlation refers to the identity of market supply and demand that affects the prices of two commodities. If the relationship between supply and demand changes, it will affect the prices of two commodities at the same time, and the prices will change in the same direction.

Extended data:

Hedge fund trading model

1, stock index futures

Hedging of stock index futures refers to the behavior of taking advantage of the unreasonable price of stock index futures market, participating in the trading of stock index futures and stock spot market at the same time, or trading stock index contracts with different maturities and different (but similar) categories at the same time to earn the difference. Arbitrage of stock index futures can be divided into cash hedging, intertemporal hedging, cross-market hedging and cross-variety hedging.

2. Commodity futures

Commodity futures also have hedging strategies. When buying or selling a futures contract, sell or buy another related contract and close both contracts at a certain time. Hedging refers to buying (or selling) physical objects in the spot market and selling (or buying) futures contracts in the futures market; Arbitrage only buys and sells contracts in the futures market, and does not involve spot trading. ?

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