Hedge fund is a form of investment fund, which is a profit-making financial fund after the combination of financial derivatives such as financial futures and financial options with financial instruments.
Hedge funds are more aggressive in their approach, focusing more on managing the total risk of their money than on relative performance.
The fund is to use to hedge the fund, foreign exchange hedge funds include pure funds and foreign exchange cash funds, trading funds, macro funds, carry trading funds and arbitrage funds.
Among them, the money fund is the most common, which is through speculative fluctuations to obtain returns.
Both futures traded funds and macro funds are relatively easy to understand, while carry-traded funds are funds that make money by raising money in low-interest countries and then reinvesting it.
As for currency arbitrage, I would like to mention it separately with investors. Arbitrage may be something that is frequently mentioned by investors in the foreign exchange field.
For small retail traders, however, arbitrage is more talk than action.
Arbitrage is primarily the business of large players, and it can be done very quickly and very profitably.
But the risks are also significant.
