THE ROLE OF FINANCIAL DERIVATIVES IN FINANCIAL RISKS MANAGEMENT
نویسندگان
چکیده
Financial derivatives are financial instruments whose price is derived from the basic instruments' prices. They represent derivative created based on existence of primary instruments, such as shares, bonds, stock market indices, or other forms assets. It precisely benefit using that point to their function. The function refers risk protection and reduction exposure some markets, currencies, countries, regions, others. In this case, we talking about for hedging investments currency positions. Those positions taken markets in specific currencies. Likewise, certain entities issue can be replaced reduced reasonable prescribed measures by derivatives. Derivatives offer a significant advantage: risks transferred when they used. Market underlying asset contractually through contract design. Of course, also have disadvantages. For example, there total loss some. research subject paper role derivatives, management. paper, author emphasizes types characteristics benefits, participants may face if use derivates.
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ژورنال
عنوان ژورنال: MEST Journal
سال: 2023
ISSN: ['2334-7058', '2334-7171']
DOI: https://doi.org/10.12709/mest.11.11.01.09