Derivatives anyone?

[Robertral]

Anyone here trade any type derivative?
I've had a scan of the site and most people seem to only trade CFD's and futures....Anyone trade options or any exotic derivatives?

 

[Airthrey Capital]

A future is a derivative.

 

[Robertral]

A future is a derivative.

yes loosely speaking, it's the most basic of derivative as it derives it's value from the underlying.

I mean instruments like caps, floors, barriers, quantos, swaps etc Mr smarty pants

Plus I wouldn't say that to a derivatives trader as you are liable to have your balls ripped off

 

[TBS]

yes loosely speaking, it's the most basic of derivative as it derives it's value from the underlying.

I mean instruments like caps, floors, barriers, quantos, swaps etc Mr smarty pants

Plus I wouldn't say that to a derivatives trader as you are liable to have your balls ripped off

I wouldn't claim that futures aren't derivatives to a futures trader as you are liable...........

 

[bonsai]

a lot of people on this board seem to trade RSI etc without much
regard to price action.

do they count ?

 

[Robertral]

I wouldn't claim that futures aren't derivatives to a futures trader as you are liable...........

We are on two different ends of the ship yet still on the same ship :cheesy: god what a crap saying I've just made up lol but I'm srue you catch my drift

 

[jmreeve]

I thought derivatives such as caps, floors, barriers e.t.c were
generally offered to banking clients to provide a specific way
of managing business risk.

Why would you want to trade these types of instruments unless you are a bank?

 

[Robertral]

I thought derivatives such as caps, floors, barriers e.t.c were
generally offered to banking clients to provide a specific way
of managing business risk.

Why would you want to trade these types of instruments unless you are a bank?

To try and make money from mispricings in these products??!?!!?!

Also I'm asking if anyone here deals with these types of instruments to hedge their risks? those were just examples

 

[jmreeve]

Apart from swap contracts none of these are exchange traded and hence, difficult to trade. How would go about actually trading these types of products?

It seems like hard work when you can make good money out of exchange traded derivatives that have the benefit of transparency, standadised contracts and excellent liquidity.

 

[Robertral]

Apart from swap contracts none of these are exchange traded and hence, difficult to trade. How would go about actually trading these types of products?

It seems like hard work when you can make good money out of exchange traded derivatives that have the benefit of transparency, standadised contracts and excellent liquidity.

yeah I know good money can be made from exchange traded derivs, I'm just interested in seeing if anybody here trades like this as it's an intertesting way to make money.
Just call up your fav broker for a price of one of these things if you have the capital, but then that's the big problem....the amount of capital that I guess most traders on here haven't got.

 

[jmreeve]

Even if I had the capital to trade in these markets (which I don't
by a long way), it is not an easy way to make money even if it is interesting.
I know one or two people that work pricing these things and they are not short of grey matter and generally do a very good job of getting the pricing right and making mega millions for the banks they work for.
Maybe you are a god in the realm of derivative pricing and can win at this but I doubt many people could.