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Does anybody here have a good understanding about derivatives?
I've been researching a lot about Futures, Options and Swaps but everything seems so confusing. It would be good if someone could clarify everything in simpler terms.
I know that a derivative is a contract that ''derives'' its value from something else... and that there is a lot of gambling involved... Pretty much all the examples involve people speculating on the price of something at a certain date. And some guy was saying that derivatives are mortgage payments, student loans, and car payments wrapped up and sold in packages... what does this even have to do with it?
I've also been seeing that the derivatives market is one of the biggest pieces of shit ever invented, but again I'd like to know why.
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BTC price and futures?
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>>2741774
I work in the treasury department for a large bank specializing in options. We mainly use them to hedge our position in our positions. We generally only use a 50% hedge.
You do this for stupid accounting rules. We don't want to turn into a Leman Brothers in a market downturn.
What do you want to know?
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>>2741786
I wanna know what exactly are futures, options and swaps. How can you make money on it, and how can you lose money on it. And if it really solves a real problem or if it's just a meme that the big boys play.
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>>2741774
You need an advanced mathematical background to make any money on these as at the other end of the trade are desks of 3 Math PhDs
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>>2741797
Research it you faggot, I'm not wasting my time for a kid on 4chan. You can literally find all of that out by doing a google search.
I thought you had a real question, not a "babby's first rodeo".
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>>2741774
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities
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>>2741975
Is the size of the derivatives market in comparison to global GDP a cause for concern? Or is it just a blown up talking point? For instance, when people talk right now about a "derivatives bubble" and mention that Deutsche Bank managing like a $47 trillion derivatives book, is there any reason to be truly concerned? Or is it just big numbers?
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>>2741975
Woah, excuse me for asking about a confusing topic. If you had properly read my post you've known what I meant, seems to me that you don't know shit when your reaction is to get bitchy about my lack of knowledge.
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>tfw no options for shitcoins
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