what are derivatives?

[Sebastian23]

can someone provide a financing 101 type tutorial of basic financial terminology and what people should know in the world of finance? please.

what are futures, and options. I slightly have a little bit of knowledge but so far this is my first semester as a finance major, ive taken portfolio management and a poor man's version of incorporating financial risk managment in the corporate structure. Both unfortunately have not been enlightening.

[HiGHland~Heather]

Hey

Here's one site that seems useful. I went to countless lectures/seminars on Finance-related material but I was too busy chattin away or sleeping so I think I best brush up on my knowledge before end of summer :)


Link: http://www.investopedia.com/terms/

[dj XeNo]

rates of change in calculus

[AFGHAN_ZMARAI]

they're the slopes of a graph.

[$H@MZ]

guys he is talkin bout in financial terms not in mathematic terms! I cant even remember what a derivative is... something to do with the stock market... :sarb:

[paulie walnuts]

derivatives are just another category of securities. the difference is that their value is dependant upon the underlying.

options, futures/forwards, and swaps are the most liquid derivatives. for the most part, they are used for hedging.

as a household consumer, you probably won't ever enter the derivatives market, but you could always play around with options.