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Understanding Financial Derivatives by Subhanshi Arya is a document available to read on EtoBox.

Derivatives derive their value from an underlying asset and allow investors to leverage small amounts of money to control assets of much greater value. This leverage can multiply gains if correct, but also multiply losses if incorrect. A famous example is Nick Leeson, whose bad derivative trades as a rogue trader caused the collapse of Barings Bank due to the enormous leverage involved. While Warren Buffett is strongly against their use due to expected failures, derivatives continue to be a normal part of b

Author

Subhanshi Arya

Language

EN