semi precious stone jewelry wholesale india What are hedge funds. How do you do it? What is the profit method?

below wholesale gold jewelry 1. The English name of the hedge fund is hedge function, which means "fund that risks", which originated in the United States in the early 1950s. The purpose of its operation is that the use of financial derivatives such as futures and options, as well as the operating techniques of buying air sales and risk hedging of different stocks, can avoid and resolve investment risks to a certain extent.
In the most basic hedge operation, after purchasing a stock, the fund manager purchases a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. In another type of hedge operation, the fund manager first chose an industry with a bullish market, buying several high -quality stocks in the industry, and selling several inferior stocks in the industry at a certain ratio. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Then the decline in the stocks of poor companies must be greater than high -quality stocks, and the profit obtained by selling the air market must be higher than the loss caused by the decline in buying high -quality stocks. Because of such operational means, early hedging funds can be said to be a fund management form based on a conservative investment strategy based on hedging.
After decades of evolution, hedge funds have lost its initial risk hedge connotation, and hedge funds have become synonymous with a new investment model. That is, based on the latest investment theory and complex financial market operation skills, make full use of the leverage effectiveness of various financial derivative products to undertake high -risk and pursue high -yield investment models.

2. The impact of hedge funds on my country may bring in China
It in the market that international hedge funds are rarely involved in, China is the largest. At present, my country has become one of the "dual engines" of the world economy, but the financial market is not perfect and in the period of important system transformation. Since the reform of the RMB exchange rate mechanism, the cumulative appreciation rate has reached about 6%, but it is far less than the strong expectations of subsidizing the further appreciation of the RMB. These factors are undoubtedly the temptation of hedging funds. Although my country still implements strict capital project controls, hedge funds have long been not satisfied with indirect profit through the surrounding markets. In the channels such as QFII, foreign direct investment and trade projects, the figures of hedge funds have begun to be looming; some trade contracts and direct investment have also become their protection. The hedge fund of "gray" has begun to try to enter China. Although it is not yet available in China, it can still have an important impact on China's economy and finance through different channels.
RMB exchange rates
With the steady advancement of the exchange rate system reform, the RMB shows a strong appreciation trend, which undoubtedly provides endless imagination for hedge funds. However, there are still obstacles to make a financial turmoil in China: the control of capital project control, the management of the RMB exchange rate, and the lack of RMB derivatives, making hedge funds lack the necessary profit channels and tools. Therefore, hedge funds are also difficult to enter the Mainland to directly speculate in the Mainland. At present, it can only be indirectly profitable through the RMB "Non FORWARD" (NDF) market.
Since 2003, the market size of the RMB NDF market in Hong Kong and Singapore, China, has risen rapidly, and has hinted to a certain extent. In August 2006, the American Chicago Commodity Exchange also launched three pairs of NDF derivatives, namely the futures and options of the RMB, the euro, and the yen, which enables the NDF and the domestic RMB exchange rate to be more linked. The situation of the financial market reform process.
Anyway, the opening of capital accounts is a subject that cannot be avoided in the future. On this rumbling wheel, the most protected financial sector must be baptized in international storms, and the obstacles currently facing hedge funds will also be lifted one by one. However, with the lessons of the Southeast Asian financial crisis, my country can be described as cautious about the stability of exchange rates and financial security, and it is probably not easy to attack my country's exchange rate system.
The stock market
The domestic A -share market is more attractive to hedge funds than Hong Kong stocks, because the Chinese stock market is relatively immature, which is incredible for hedging funds that are good at exploring the market gap. Essence Under the current conditions, in addition to RMB exchange, hedge funds still have other obstacles to enter the mainland stock market directly: to obtain QFII qualifications, it is strictly reviewed and the investment scale is limited; The operation must strictly abide by the relevant laws and regulations of my country and fulfill the obligation of information disclosure; the domestic stock market has not yet established a short -term mechanism, that is, there is no tool for hedging.
, these difficulties are not enough to trip the pace of hedge fund pursuing profits. Many institutional investors have layers of affiliation behind them. They are vividly called "tractors" accounts. Some hedge funds simply participate in the stock market in their personal names. In the recently rising stock market, hedge funds do not even need to pass hedge. It can obtain considerable returns by relying on superb investment skills and high leverage coefficients. Not only that, on September 8, 2006, China ’s first financial derivative exchange -China Financial Futures Exchange was officially listed, marking a new leap from Chinese futures market from commodity futures to financial futures. The launch is only a matter of time, which exactly provides further convenience for hedge operations.
This cannot be exchanged and QFII limit is the biggest obstacle to the current hedge fund entering the mainland stock market. Once the capital account is completely liberalized, hedge funds have a smooth access and exit channel, and the current maturity and standardization of the stock market will be more likely to be impacted.
In real estate markets
Under the dual effects of current high housing prices and expected RMB appreciation expectations, entering the real estate market is huge attractive to hedge funds. In recent years, my country's real estate market has continued to operate at a high level, and some prices have contained virtual high components, while bank loans that support the prosperity of the real estate market are "real gold and silver". Due to the inextricable connection between the real estate market and the financial system, once a hedge fund is maliciously attacked, the collapse of the real estate market will inevitably cause an earthquake in the entire financial system.
The government knows the importance of promoting the healthy development of the real estate industry. Since 2003, a number of macro -control measures have been introduced one after another. Although the control effect is not satisfactory, it has reflected the good willingness and determination of the authorities. Compared with financial assets such as stocks, the mobility of real estate is not well -liquid and strict regulation measures will increase the transaction cost and policy risk of hedge funds.
In the supervision measures of hedge funds
The existence and development of hedge funds is an inevitable and centralized manifestation of capital chase, which is positive for the development of the financial market. First of all, hedge funds are essentially a high -return investment method pursuing risk control. The reasonable use of reasonable use is conducive to enhancing investors' ability to resist risk; Basic, under its activities, the spread will gradually disappear, which will help the market to discover the reasonable price of factors and make the market a balanced; again, hedge funds can enhance the linkage between the domestic financial market and the international financial market and promote finance The maturity and development of the system. Therefore, wedn the hedge fund should not be understood as a flood beast, but we must actively study and guide, promote strengths and avoid weaknesses, and achieve the purpose of me. At the same time, my country must fully attach great importance to the side of hedging funds to disturb the normal order of the market, take practical measures, explore effective supervision methods of hedge funds, and maintain the security of my country's economic and financial markets.
First, we should resolutely implement the ideas of gradual, grasping rhythm, and orderly opening up capital markets. Through orderly opening up, it has won valuable time for my country's economic and financial system, talent training, and experience accumulation. In the process of gradual opening up, a large influx and large outflow of international capital should be avoided, resulting in sharp fluctuations in exchange rates and obstructing financial security.
Secondly, the publicization of hedge funds is promoted. After the capital market was fully opened, it was blind to prevent the death of the hedge fund. Instead of entering through various "gray" channels, it is better to make it open. If the management fee is allowed to divide the hedge fund and the common fund, implement the fund affiliation relationship, and provide certain operating convenience, etc., in order to urge and encourage hedge funds to register.
third, set up special regulations to guide the behavior of hedge funds, so that the management of hedge funds can be rely on, and standardize the operation of hedge funds. Differential treatment of low -risk, stable hedge funds and high -risk, and speculative hedge funds are treated and supervised. Establish a large capital flow monitoring system. Modes of large -scale changes early, and implement comprehensive monitoring of markets such as stock markets and foreign exchange markets that are vulnerable to impact. Hedge funds are required to strengthen information disclosure and increase transparency.
Fourth, restrict hedge fund financial leverage multiple. In the case of a certain difficulty in directly controlling hedge funds, strict control of financial institutions to hedge funds are effective indirect means. Financial institutions such as banks should carefully consider market risks, strict loan review, and strict requirements on the number and quality of mortgaged assets. After all, hedge funds have limited capital. After all, the support of leverage has lost its ability to make waves in the financial market. It can also prevent financial institutions from becoming the ultimate bearer of hedge fund risks.
Fifth, strengthen international cooperation, communicate information, exchange experiences, strengthen the supervision and coordination of capital offshore operations internationally, and jointly maintain the stability of the world capital market.
The method is leveraged