Quantitative hedge funds are funds that use quantitative and hedging strategies to invest. Quantitative hedging is to neutralize the overall risk of the market through hedging strategy, with the aim of avoiding unnecessary risks brought by purchased assets. Its quantification is a means to find the alpha with quantitative model, which can effectively eliminate the interference of subjective and irrational factors, thus ensuring strict discipline in investment.

The secondary market, also known as the circulation market, refers to the market formed by the trading and circulation of various securities among different investors after the issuance of securities. Generally speaking, it is a place where stocks are traded.