Financial Derivatives - Is You Money Safe?
15
DERIVATIVES ??? What are FINANCIAL
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Financial Derivatives - Is You Money Safe? Financial derivatives are securities whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. The most common types of financial derivatives are futures contracts, forward contracts, options and swaps. In order to understand the enormous size of these derivative (paper) contract market, please take a look on the following chart that originates from economist John Exter. All amounts presented are estimated approximations but should give you an understanding on how those "derivatives" relate to other existing assets of the world. http://www.mylifeplan.info/financial-derivatives.html Warren Buffett has called derivatives as "Weapons of Mass Destruction"
Transcript of Financial Derivatives - Is You Money Safe?
DERIVATIVES
???
What are
FINANCIAL
UNDERLYING
Financial instruments
whose value
is derived from an …
ASSET
How much derivatives there is ….?
CALCULATE
well …
lets first learn
how to …
HO
W M
UC
H ?
?One Hundred Dollars
Ten Thousand Dollars
100 Million Dollars
1 Billion Dollars
1 TRILLION
DOLLARS
Morgan Stanley
1.722 T $
Derivative
Exposure
HSBC
4.321 T $
Derivative
Exposure
Goldman Sachs
44.192 T $
Derivative
Exposure
Derivative
Exposure
Bank of America
50.135 T $
Citybank
50.102 T $
Derivative
Exposure
Derivative
Exposure
70.151 T $
JP Morgan Chase
9 biggest banks
DERIVATIVE
EXPOSURE
228.72 T $
in the world
CO
NF
IDE
NT
??
STILL
