Nairobi Securities Exchange (NSE) Derivatives Risk Manager Geoffrey Radier talks about the NEXT Derivatives market, the nature of the derivative contracts and the value of derivatives compared other asset classes. Geoffrey expounds the relationship between a derivative and its underlying asset what you need to trade derivatives. He also explains why some prefer buying a derivative contract and a stock of the same stock.
- The basics of Derivative contracts
- You can buy both a stock and the derivative of a stock.
- Derivatives are a derisking tools in case an investor is uncertain about the future of the market
- After opening a derivatives account with a broker, an individual can trade independently or via the broker