The next sentence of "Investment is risky, you need to be cautious when investing," which is similar to "The stock market is risky, so you need to be cautious when entering the market."

This sentence is to tell people who are preparing to invest that although investment projects such as stocks have high returns, they also have high risks. They should think twice before injecting funds and do not blindly invest according to what others say.

Based on the risk characteristics of the product, banks generally classify the risk of financial management products as R1 from low to high. Financial products of this level do not guarantee the repayment of the principal, and the principal risk is extremely high. At the same time, the income is floating and highly volatile. Investments are more susceptible to risk factors such as market fluctuations and changes in policies and regulations.

In terms of credit risk, the product can bear the risks of credit entities of all levels. In terms of market risk, the product can fully invest in various high-volatility financial products such as stocks, foreign exchange, and commodities, and Leverage amplification methods such as derivative transactions and stratification can be used for investment operations.

Venture investment has the broadest meaning, including investment in all risky projects. Entrepreneurial venture capital specifically refers to projects started by individuals or teams, with the greatest unknowns. The biggest difference from angel investment is that angel investment must have management support, providing management, industry, and market guidance to the entrepreneurial team, thereby maximizing the success of the project. , while entrepreneurial investment may only include equity participation and not guidance. Entrepreneurial venture capital and angel investment have the same points: they are both venture capital investments; they are both investments in the initial stages of the project and are equity investments with the highest risk.

In finance, a hedging refers to an investment that is designed to reduce the risk of another investment. It is a way to reduce business risks while still making a profit on your investments. Generally, hedging is to conduct two transactions at the same time that are related to the market, opposite in direction, of equal quantity, and with profits and losses offsetting. Market correlation means that the market supply and demand relationship that affects the price of two commodities is identical. If the supply and demand relationship changes, it will affect the prices of the two commodities at the same time, and the direction of price changes is generally the same. Opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter which direction the price changes, the full text is written.