Derivatives can be complex financial instruments that subject novice users to increased risk. However, they are often used for three primary purposes: to hedge, speculate, or leverage a position.

Derivatives allow trading of assets without owning them, useful for hedging or speculation. Leverage in derivatives can control large assets with less cash, but increases risk. Derivatives provide ...

In Australia, popular derivatives include options, futures, and swaps, often tied to ASX-listed stocks or the AUD/USD exchange rate. Professional traders often use derivatives to hedge or offset risk.

These derivatives include energy futures and options contracts, as well as energy swaps. Energy derivatives are financial instruments whose underlying assets are energy products like oil ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The writer is a former banker and author of “Traders, Guns and Money” and “A Banquet of Consequences ...

The scale of derivatives held by major banks like JPMorgan Chase & Co., Citibank and Goldman Sachs, amounting to $203 trillion, has raised concerns about the potential risks these positions might ...

Trading volume has also quadrupled in a year. Weather derivatives were born in the late 1990s. Driven in part by U.S. energy company Enron, the market expanded and attracted speculators who were ...

A long-standing powerhouse in equity derivatives, Bank of America has consistently ticked most of the right boxes – except for one niggling omission: exotics. After years operating on the fringes, the ...

Crypto derivatives have become an increasingly large part of the global crypto asset markets, enabling traders to speculate on price movement or hedge their market exposure. Read on to learn what ...