Hedge products refer to financial funds that combine financial derivatives such as financial futures and financial options with financial instruments for the purpose of profit, and refer to two fund transactions that are market-related, opposite in direction, equal in quantity and balanced in profit and loss.

The use of hedging products: the use of financial derivatives such as futures and options, as well as the operation skills of buying and selling different related stocks and hedging risks, to some extent, avoid and resolve investment risks.

Features of hedging products:

1. Complexity: futures, options, swaps and other financial derivatives. The increasingly complex structure and innovative mode have gradually become the main operating tools of hedging products.

2. High leverage: For example, a hedging product with a capital of only $6,543.80 billion can lend billions of dollars by repeatedly mortgaging its securities assets.

3. Private placement and concealment: The organizational structure of hedging products is generally partnership. Fund investors buy shares with funds, provide most of the funds, but do not participate in investment activities; Fund managers join in with funds and skills, and the investment decision of debt funds has high concealment and flexibility.