What is the popular and concise explanation of hedge funds?
The popular and concise explanation of hedge funds is to use various trading methods (such as short selling, leveraged operation, program trading, swap trading, arbitrage trading, derivatives and so on. ) to hedge, transpose, hedge, and make huge profits. Hedge funds. An investment fund. It belongs to a typical market product. Hedge funds are called funds, which are essentially different from mutual funds in terms of security, income and appreciation. The Fund uses various trading methods (such as short selling, leverage, program trading, swap trading, arbitrage trading, derivative products, 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.