Understanding Financial Derivatives: A Comprehensive Guide to Options, Futures, and Swaps
Financial derivatives are complex instruments that derive their value from an underlying asset, index, or rate. They play a crucial role in modern financial markets, offering tools for risk management, speculation, and arbitrage. This article provides a comprehensive guide to three main types of financial derivatives: options, futures, and swaps, exploring their mechanics, uses, and implications for investors and the broader financial system.
Options: Flexibility and Leverage
Basics of Options
