Derivatives Primer, A: Options, Futures and Structures

The quick introductory primer on derivatives for every investor and financial professional.

Derivatives markets dwarf other markets: The best estimate of their size is $300 trillion. For comparison, the value of all NYSE-listed U.S. equities is about $16 trillion. Because derivatives introduce massive leverage into the financial system, and because these markets are so large, regulators are concerned about derivatives' implications. The market can be organized into… (more)

The quick introductory primer on derivatives for every investor and financial professional.

Derivatives markets dwarf other markets: The best estimate of their size is $300 trillion. For comparison, the value of all NYSE-listed U.S. equities is about $16 trillion. Because derivatives introduce massive leverage into the financial system, and because these markets are so large, regulators are concerned about derivatives' implications. The market can be organized into three groups: options, futures, and structures.