Hedge Funds are founded to be traded either to the professional investors or to the individuals with sufficient private wealth. In addition to the classical mutual fund investments it also retains high risky derivative instruments of future contracts and forward transactions. Hedge funds loan securities to their portfolio accounts by showing deposits from its private hedge fund capital assets. On the other hand, hedge funds can use local (YTL) or foreign currency based credits for maintaining its cash requirements. Hedge funds can also buy loaned stocks to their portfolio accounts or give away loaned stocks from their own portfolios.

Furthermore by the agency of Hedge Fund Applications, pre-loaned stocks can be used for short selling operations.