Hedge fund, also known as hedge fund or hedge fund, is a form of investment fund. It uses hedging means, that is, financial derivatives such as financial futures and financial options, to make profits, and uses various trading means to hedge, transpose and hedge, so as to obtain huge profits.

The trading methods of hedge funds are divided into stock index futures hedging, commodity futures hedging, statistical hedging and option hedging. Hedging of stock index futures refers to the behavior of taking advantage of the unreasonable price of stock index futures market and participating in the trading of stock index futures and stock spot market at the same time to earn the difference; Commodity futures refers to buying or selling a futures contract, selling or buying another related contract at the same time, and closing two contracts at the same time within a certain period of time; Statistical hedging refers to arbitrage by using the historical statistical law of securities prices; Option refers to derivative financial instruments generated on the basis of futures.