hedge fund hedge fund.
A form of investment fund.
It belongs to exempt market products.
Hedge funds are called funds, but they are actually fundamentally different from mutual funds in their investment philosophy of safety, income, and appreciation.
This kind of fund uses various trading methods (such as short selling, leverage operations, program trading, swap trading, arbitrage trading, derivatives, etc.) to perform hedging, transposition, hedging, and hedging to earn huge profits.
These concepts have gone beyond the traditional operational scope of preventing risks and ensuring returns.
In addition, the legal threshold for launching and establishing a hedge fund is much lower than that of a mutual fund, further increasing the risk.
In order to protect investors, securities regulatory agencies in North America have classified hedge funds as high-risk investments and strictly restricted the participation of ordinary investors. For example, it is stipulated that each hedge fund should have fewer than 100 investors, and the minimum investment amount is US$1 million, etc.
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