With the opening of the financial market, the financial derivatives market has also encountered greater development opportunities. However, opportunities and challenges always coexist, so enterprises must use financial derivatives reasonably and correctly. This paper adopts the method of combining theoretical analysis with case analysis to introduce the types, risks, applicable mechanisms and typical application cases of financial derivatives in detail. In addition, through detailed descriptions of the theoretical underpinning, the reader could learn about the trading processes and profitability mechanisms of several major derivatives, as well as conducting immersive simulations through case studies. Through in-depth analysis and research, it is concluded that enterprises should actively invest in technology and resource support, use derivatives to control risks and realize enterprise value. Hedging, rather than random speculation, should be the first rule of thumb for companies using derivatives. It is hoped that the research of this paper can provide a good way for existing enterprises to use derivatives to avoid risks and help the financial derivatives market achieve steady development.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.