If you are thinking of a trading option outside traditional stocks and bonds, derivatives trading can be a good option. Derivatives pay off over a period of time which is subsequently based on the performance of assets, interest rates, exchange rates, or indices. The payoff can be either in cash or in kind(assets )and vary, of course, by performance and timing. In addition to … [Read more...]

A derivative is a financial instrument that is derived from some other asset, index, event, value or condition (known as the underlying asset). Rather than trade or exchange the underlying asset itself, derivative traders enter into an agreement to exchange cash or assets over time based on the underlying asset. A simple example is a futures contract: an agreement to exchange … [Read more...]