Derivatives: Uses and Misuses
Interactive

Derivatives: Uses and Misuses

Intuition Publishing
Updated Sep 23, 2020

Due to the possibility of large leveraged losses, and the several high-profile cases of rogue traders who lost vast sums using derivatives, they are seen in a negative light. If used correctly they can offer many positives to traders and investors. We discuss the positives, and negatives, and also describe how derivatives allow the transfer of risk between different types of market participant.