financial derivatives
Contract-based securities trading
Financial derivatives are contracts whose value depends on the price of something else—stocks, bonds, commodities, interest rates, or currencies.
The main types are options, futures, and swaps.
Derivatives let investors hedge against risk or speculate on price movements without owning the underlying asset: The fund used derivatives to protect against currency fluctuations.
Complex derivatives played a central role in the 2008 financial crisis.
- hedgingNoncommittal maneuvering
- forwardsToward what lies ahead
- credit default swapsContracts insuring against debt failure
- optionsAvailable courses of action
- futuresContracts for future delivery
swaps · systemic risk · too big to fail · over the counter · trading desk · arbitrage · speculation · market risk · leverage · interest rates · mark-to-market · risk management · Greek letters · commodity futures · legal frameworks · indices · over-the-counter · expiration date
financial derivativesstocks
Ownership stakes or inventory
equities · bonds · common stock · cash · securities
financial derivativescash
Ready spending funds
savings accounts · certificates of deposit · money market accounts · bank deposits · index funds
financial derivativesreal estate
Land and its structures
physical property · tangible assets · land · equipment · machinery
financial, finance, financier, financed, financing, finances, financially, derivative, derive