top of page

Derivatives

Financial instruments are securities that derive their value from an underlying asset, financial indicator, or commodity. They enable traders to exchange specific financial risks within financial markets. Essentially, these instruments allow investors to participate in a range of financial activities without directly owning the underlying asset. Such instruments include futures contracts, options, swaps, and other derivatives.


These financial tools allow traders to hedge against potential financial losses or to speculate on the future performance of the underlying asset. For example, a futures contract allows a trader to buy or sell an asset at a predetermined price on a future date, while options provide the right to buy or sell an asset at a specific price within a set time frame. In summary, financial instruments provide investors with various opportunities to participate in financial markets and manage financial risks. They are essential tools for traders who aim to maximize their profits and minimize their losses.

1 Ansicht0 Kommentare

Aktuelle Beiträge

Alle ansehen

Drawdown

Drawdown is a term used in finance to describe the decline in value of an investment or trading account from its highest peak value to its lowest point. It measures the extent of the loss experienced

Decentralized Finance (DeFi)

Decentralized finance (DeFi) is a new financial model that uses distributed ledger technologies to provide services such as lending, investing, and exchanging crypto assets without the need for a trad

Day Trading

The term used to describe the act of buying and selling a batch of securities within a single day, or even within seconds, is known as "day trading." Day traders typically buy and sell securities rapi

bottom of page