The Complete Guide to Investing in Derivatives

Download or read book The Complete Guide to Investing in Derivatives written by Alan Northcott and published by Atlantic Publishing Company. This book was released on 2011-04-27 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: As one of the more complex but higher yielding financial opportunities available, derivative investing has become a multi-trillion dollar industry. According to a recent Bank for International Settlementsâe(tm) Second Quarter Reports, there were more than $6 trillion in contracts outstanding in one year âe" more than $800 billion of that held by non-financial customers around the world. The physical number of contracts broke the 300 trillion mark and the numbers continue to rise annually around the globe. The combination of lower risks and potential skyrocketing gains that a derivative offers has made many people stop and take notice, yet the seemingly complex nature of such an investment is cause for pause. With this complete guide to understanding derivative investment though, you will not only understand how they work, you can also start making incredibly high returns on a regular basis, all while minimizing your risk. You will start by learning exactly what derivatives are and how the various different forms, including forward contracts, futures contracts, swaps, and options, allow you to make trades on less tangible things outside of the various different trading opportunities you normally have. You will learn why it is important to know everything about derivatives before you start to trade and the vital use of risk analysis and management to maintain the economic stability of your portfolio. You will learn how to use post data and other variables to manage your risk and what the market uses to determine the futures and forward contract prices. In addition, the prices of commodities, exchanges rates, and interest rates as they apply to derivatives will be discussed, including how they are established. You will learn what a contract provides, how the futures markets operate, what taxes and commissions you can expect in futures trading, and what people are currently working on in the futures market. In addition, you will learn the various forms of futures, such as stock index futures, Treasury bond and Treasury note futures, and also Treasury bill and Eurodollar futures. You will learn directly from the experts, thanks to dozens of hours of interviews with the nationâe(tm)s top derivatives trading experts. You will learn how to trade and add swaps to your portfolio, manage the risk associated with them, and how they are priced and valued. You will learn what options allow you to do and how you can utilize call and put options. You will learn the various different option pricing models and trading strategies, and also how the continuous time option pricing model operates in different markets. For anyone who wants to take advantage of the derivative market but does not yet have the necessary knowledge to do so, this book will provide you with a comprehensive outlook on every detail involved in trading within these complex, more advanced markets. Atlantic Publishing is a small, independent publishing company based in Ocala, Florida. Founded over twenty years ago in the company presidentâe(tm)s garage, Atlantic Publishing has grown to become a renowned resource for non-fiction books. Today, over 450 titles are in print covering subjects such as small business, healthy living, management, finance, careers, and real estate. Atlantic Publishing prides itself on producing award winning, high-quality manuals that give readers up-to-date, pertinent information, real-world examples, and case studies with expert advice. Every book has resources, contact information, and web sites of the products or companies discussed.