Derivatives

Derivatives have experienced explosive growth in recent years. In the United States, the number of options contracts traded on exchanges has grown from 1.5 billion in 2000 to over 6 billion in 2020, according to the Options Clearing Corporation. The increasing popularity and complexity of derivatives have made them an essential part of modern finance. However, their complexity and potential risks cannot be ignored. A solid understanding of derivatives and their applications is crucial for investors and financial professionals alike, as it can help manage risk and avoid losses.