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Does the following definition of a “derivative” sound like something you would spend you hard earned money on? Or, does it sound like a complex shell-game designed to steal your hard earned money from you? If you are stupid enough to believe that “Wall Street” is anything more than a criminal racket, you deserve to pay your tax dollars to bail the mutherfuckers out of the billions of dollars they’ve squandered on this elaborate scam. ARE YOU TIRED OF THE BULLSHIT YET?
“A derivative instrument is a “contract between two parties that specifies conditions-in particular, dates and the resulting values of the underlying variables-under which payments, or payoffs, are to be made between the parties. One of the oldest derivatives is rice futures, which have been traded on the Dojima Rice Exchange since the eighteenth century. Derivatives are broadly categorized by the relationship between the underlying asset and the derivative (e.g., forward, option, swap); the type of underlying asset (e.g., equity derivatives,foreign exchange derivatives, interest rate derivatives, commodity derivatives, or credit derivatives); the market in which they trade (e.g., exchange-traded or over-the-counter); and their pay-off profile.
Derivatives can be used for speculating purposes (“bets”) or to hedge (“insurance”). For example, a speculator may sell deep in-the-money naked calls on a stock, expecting the stock price to plummet, but exposing himself to potentially unlimited losses. Very commonly, companies buy currency forwards in order to limit losses due to fluctuations in the exchange rate of two currencies. — Wikipedia
several times—and it’s forcing us to reckon with ethical questions we never thought we’d have to consider.