Derivative securities - a chance for everyone

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Many citizens of our vast country and other countries of the former Soviet Union after the collapse of the latter were able to manage their own affairs.Most caught in the sale, because at that time, it really is a quick way to obtain excess profits.Separate contingent decided to invest in the production of the long-term prospect of profit.And only a few have paid attention to international markets, including stocks.Today, this situation is largely due to changed, of course, the development of the Internet.However, many rush to make deals, does not even get the minimum knowledge in this area.

Many can hardly imagine the differences between basic and derivative securities, why they are needed and what role do.If the issues underlying assets clarity is still present, then there are problems with derivatives, which is what they are for experienced players in the stock market is often more interesting than the underlying assets.Initially, it is worth noting the fact that derivatives are increasingly flexible, if you want a versatile tool in the stock market.

Properties

First of all, it should be noted that the domestic securities (also known as derivatives) have a price that is in all respects tied to the price of the underlying asset.Second, the purchase of financial instruments such as derivatives securities, by definition, do not require an initial investment of significant capital, with a profit comparable in scope with the main papers.Finally, this kind of paper are extremely urgent.

little history

It is worth noting that the market, which presents basic and derivative securities, is, of course, an integral part of the world market in its global sense.Despite its 150-year history of the derivative securities up to 70-years of the 20th century, virtually carrying any significant role in shaping the financial flows.The impetus for the active development of the market served as a general liberalization of the world economy in general and the financial system, in particular, as well as the important role played in this respect the formation of floating exchange rates.In addition, if earlier the derivatives market was purely Exchange, in the current economic conditions, it has developed in two directions, including out to the OTC securities market.This fact, in many respects, enhances the potential, including in the field of security risks.Naturally, neither had an impact on the development of the market, representing domestic securities, over the last 10 years of a 20-fold increase in the volume of transactions on the standard, basic securities.

development prospects

Like other fishery products of human activity most, hardly any critical role played by the process of globalization, in the sense that more and more players appear on the market, ready to work with financial instruments such as derivatives securities.In addition, according to analysts and experts will continue in the future dominance of major interest contracts, such as options and futures, especially for government bonds.

In conclusion, it should be noted that derivatives are inherently attractive, primarily to private investors.The reasons for this are quite simple - a low amount of investment and the relatively high income compared to other financial instruments, which gives the opportunity to try their hand at gambling, even the common man, given the development of the Internet.