Hedge fund concept and basic features

Hedge Fund (hedge fund) is an investment tool that uses diversified and diversified investment to avoid risks and protect capital value. Unlike general stock funds, the biggest feature of a stock fund is that it can be bought or sold short. In addition, cross-sector investment is usually required.

Hedge funds can sell short, or gain benefits when stocks are expected to fall. If A-shares are expected to fall soon, they will borrow shares from the market and pay interest. I will throw out the borrowed stock and buy it back at a low price after the stock price falls to benefit from it. Ordinary stock funds cannot be sold short.

Hedge funds have high operation risks and have obvious leverage effects on the market. It is widely believed that hedge funds are playing a role in the current rise in oil prices.

I haven't seen economics for a long time. I really deserve my teacher and my degree.