Pros & cons of Derivatives Markets
If you are interested in pursuing a career in finance, then you may have come across the term derivatives market. And, for anyone wanting to become a certified investment banking operations professional, learning about derivatives markets is essential. So, let’s dive into the definition of derivatives, what advantages and disadvantages they offer, and also, what is investment banking and how is it related to them. Read on...
What are derivatives?
Derivatives refer to financial contracts whose value is associated with the value of an underlying asset. You can use these advanced financial instruments for many purposes such as getting access to markets and hedging. Except for a few derivatives such as futures and options that are traded on specific exchanges, most of them are traded over the counter, also known as OTC.
Some of the most prominent derivatives markets are Korea Exchange, CME Group (Chicago Mercantile Exchange and Chicago Board of Trade), and Eurex.
Notably, derivatives have been in the finance industry since their inception. Over time, they have become an integral part of modern markets. However, you should not confuse the derivatives market with a capital market.
https://blog.imarticus.org/pro....s-cons-of-derivative
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