
In this video we talk about derivatives, we focus in particular on futures contracts, how they are born, what a long position is, what a short position is. The birth of futures contracts has its roots in history, lately we have the financial declination.
In this videolesson we go into concreteness, we deepen the most liquid future that we can find in the word: the e-mini SP500, and we talk about leverage, margins, risk profile, negotiation.
We are talking about the three most important quantities concerning derivatives: fair value, which relates to the trading price; the volumes, or the quantities of derivatives traded over a period of time; open interest, a fundamental measure, which indicates the contracts that remained open after a trading day.
Let’s look at the risk profile and payoff of linear instruments. This video lesson is introductory and preparatory to the many lessons we have prepared for you on the risk profiles of the options, which we deal with in the dedicated section.
In this video lesson we explore the payoffs of the option buyer, in the simplest buying positions of a call and a put, which profit from the movement of the underlying against a risk premium.
In this video lesson we explore the simplest mirror positions to the option buyer, which in fact allow the seller to collect the risk premium and benefit from the passage of time to maturity.
Let’s compare the six fundamental positions of derivatives trading: long future, short future, long call, short call, long put, short put, in a review of the aspects addressed in previous lessons to fix the concepts.
In this course we introduce derivatives and options, an interesting subject that scares the layman, partly because of an apparent complexity of management, partly because of the images that are reported to us by the media. Derivatives are accused of being the evil of modern finance, instruments of death and speculation aimed at ruining the real economy and jobs. In reality, derivatives are like kitchen knives: it all depends on the use made of them! We provide you with the basic knowledge and tools to understand how to operate with options. They are fantastic tools with enormous flexibility. Whether you are an aspiring trader or a long-term investor, you will notice the huge benefits that mastering these concepts can bring to your trading. They are non-linear tools that allow us to reduce the risk of our money put on the market and at the same time increase the probability of profit.