Hedge fund, also known as hedge fund or arbitrage fund, refers to a financial fund that combines financial derivatives such as financial futures and financial options with financial institutions and obtains profits by means of high-risk speculation.

Hedge fund is a form of investment fund, which belongs to exempt market products. It means "risk hedge fund". Hedge funds are called funds, which are essentially different from mutual funds in terms of security, income and appreciation.

What trading methods do hedge funds use?

Hedge funds use various trading methods (such as short selling, leverage, program trading, swap trading, arbitrage trading, derivatives, etc. ) to hedge, transpose, hedge, and make huge profits.

These concepts have gone beyond the traditional operation scope of preventing risks and ensuring benefits. In addition, the legal threshold for launching and establishing hedge funds is much lower than that of mutual funds, which further increases their risks. In order to protect investors, the securities management agencies in North America classify it as a high-risk investment category, and strictly restrict the participation of ordinary investors. For example, it is stipulated that each hedge fund should have less than 100 investors and the minimum investment is $6,543,800+0 million.