WELCOME TO THE FINANCIAL PIPELINE derivatives PAGE!

Derivatives are financial securities whose value is derived from another "underlying" financial security. Options, futures, swaps, swaptions, structured notes are all examples of derivative securities. Derivatives can be used hedging, protecting against financial risk, or can be used to speculate on the movement of commodity or security prices, interest rates or the levels of financial indices. The valuation of derivatives makes use of the statistical mathematics of uncertainty, which is very complex.

DERIVATIVES EXPLAINED... The key to understanding derivatives is the notion of a premium. Some derivatives are compared to insurance. Just as you pay an insurance company a premium in order to obtain some protection against a specific event, there are derivative products that have a payoff contingent upon the occurrence of some event for which you must pay a premium in advance. READ MORE!!!   CREDIT DERIVATIVES RISK DERIVATIVE CONCEPTS A-Z TECHNICAL ANALYSIS AND DERIVATIVES TRAINING CREDIT RISK AND DERIVATIVES PRODUCTS   DERIVATIVE SYSTEMS DERIVATIVES ON THE INTERNET COMMODITY SWAPS CURRENCY SWAPS EQUITY SWAPS EXOTIC SWAPS HEDGING SWAPS INTEREST RATE SWAPS AN INTRODUCTION TO HEDGING GREEKS INTRODUCTION TO EXOTIC OPTIONS DERIVATIVES PROFESSIONALS INTUITIVELY UNDERSTANDING THE WAY OPTIONS ARE PRICED A BRIEF NOTE ON THE RELATIONSHIP BETWEEN VOLATILITY AND TIME HOW DO OPTION TRADERS LOOK AT THEIR PORTFOLIO THE RISK MANAGER RISK HOLES AND LIQUIDITY RISK MEASURING RISK DERIVATIVES AND PREMIUMS CALLS ARE PUTS AND PUTS ARE CALLS HOW DO BANK DERIVATIVES TRADING OPERATIONS WORK? COMBINING DERIVATIVE PRODUCTS WHAT IS HEDGING? WHY DO COMPANIES HEDGE? STRUCTURED NOTES