Of course, financial derivatives is one of the most sophisticated products that investors can subscribe to at the moment. Not surprisingly, they are characterized by a risk in operations that is higher than the rest of financial products. For this reason, it is not suitable for all profiles of small and medium investors. If not on the contrary, those who have more knowledge and learning in its operations. So that in this way, the risks of losing a good part of the invested assets are reduced. Financial derivatives can be considered one of the great unknowns in the investment sector.
From this general scenario, nothing better than knowing its true meaning to show whether or not it is convenient for you to carry out this kind of operations from these precise moments. Because in effect, a financial derivative is a product aimed at investment and whose value is based on the price of another financial asset which is often referred to as the underlying. That is, if for example oil is applied to the future value, after all, we are referring to the price of black gold.
It should be mentioned that if any financial derivative is characterized by something, it is because it is a highly flexible product. This in practice means that it can refer to any financial asset worth its salt, with practically no limitations in terms of the offer that the financial markets can generate. That is, from different stocks that are listed on the equity markets to stock indices, interest rates or also raw materials. Without forgetting the assets from fixed income. That is, you will have many options to choose from and make the savings profitable according to the strategy you have designed at all times.
Financial derivatives: their composition
These kinds of financial products are distinguished because they are open to new opportunities in the investment sector. In this sense, the so-called derivatives are becoming more frequent. Traders Union: Best Low Spread Forex Brokers who are those who intervene in the currency exchange rate. In this type of financial products you can take several options on different currencies. It does not have to be the euro, far from it, but you are open to all international companies that are listed on international markets. From the US dollar, Swiss franc, Japanese yen or even the Norwegian krone.
It is a very specific form of financial derivatives that meets a very special demand from small and medium investors. Not in vain, the currencies It is one of the greatest exponents to operate with this model for investment. Although it can also be executed with raw materials, precise metals or even with sovereign bonds. In this sense, there are practically no restrictions of any kind so that you can operate from these precise moments. In any case, what you will need is a high level of learning in your operations, after all, it is not about buying and selling shares on the stock market.
Credit derivatives
There are also other very innovative ways to carry out these investments and which are channeled through so-called credit derivatives. It is basically the risk that a credit or voucher and that have had a special relevance during the first years of the economic crisis. Where investors have been able to make their operations profitable with much higher intermediation margins than through other more conventional financial derivatives. Although on the other hand the risks of taking positions in these products are much higher. To the point that you can leave a lot of euros on the way if the evolution of them is not really what you expected from the beginning.
From a general scenario, you should also tell that they are financial products that are not aimed at any investor profile. Not much less, since only those accustomed to this kind of operations will be able to monetize your personal assets or family. This should not be forgotten so that you do not get a not very pleasant surprise in the next few days, and as has happened to your colleagues who have invested in this financial product without knowing what it really was. And the effects could not have been more disastrous from the accounting point of view of the operations.
Do you want to know other derivatives?
Of course, if what you want is the odd surprise to carry out your investments with financial derivatives, you will not have excessive problems. Because indeed, you can also find other derivatives as suggestive and innovative as those derived from CO2 emissions, inflation derivatives, etc. Although it may seem incredible, you can make money with these new alternatives to investing. Although as in the previous cases with a notable dose of risk in operations. Not surprisingly, they are not made for the most common of mortals.
On the other hand, there are also present in this business opportunity the so-called commodities. They are options on raw materials, such as oil or gold, among some of the most relevant. Where, some of the best known are represented by options, futures or even warrants themselves. Of course, it is another way of looking at the investment world and it is present in the offers that have been developed in recent years, both banks and financial platforms.
Financial derivatives fees
Another aspect to take into account is the reference to the price of these operations in the financial markets. Well, in this sense the differences are not very wide with respect to other more conventional financial products. Although everything will depend on the chosen financial asset by the user. Their fees are roughly in the middle ground between buying or selling shares on the stock market and mutual funds. Although the more sophisticated assets provide prices that are more demanding as a result of targeting international markets where operations must be paid in a currency other than the euro.
In any case, you cannot forget that the key to delving into this financial product lies in the fact that it is necessary to know in where do you invest the money. Something that all traders are not used to and that causes the results not to be what is really expected in any kind of investment strategy. Beyond other technical approaches and perhaps also from a fundamental point of view. It is something you should have from now on if you do not want unexpected surprises.
On all stock indices
However, not all financial derivatives are equally complex. Of course not and in this sense you have a wide range of these investment models. They range from the positions taken in some of the blue chips of national equities, such as Endesa, BBVA, Repsol or Banco Santander to the future options of the benchmark index, the Ibex 35. Without neglecting the 10-year bond market as a more conservative strategy to make the savings profitable in a balanced way.
Other less well-known investments are also present, such as options on the Ibex 35. In any case, these are certainly more complex formats that require a greater understanding of this financial product. Among other reasons because it is not a homogeneous model, if not, on the contrary, it has different applications and of a different nature, as you may have seen in this article. Therefore, you must be very clear to which of them you are going to address from now on.
Select the right asset
On the other hand, one of the keys to making a profit is to choose the financial asset where you want to invest your savings very well. Especially if you have previously operated with it since this action will facilitate the task in a very remarkable way. Without experimenting in this sense since the only thing you can find is the odd surprise more negative than usual. This product not designed to experiment with him, but on the contrary to have things very clear from the beginning. It is the objective that you must consider when developing any investment strategy.
If you comply with these simple requirements, you will have a lot of ground gained and closer to which you can obtain certain capital gains in the operations carried out through financial derivatives. Because it is at the end of the day what it is about, even if it is through a product as sophisticated as this one. Not surprisingly, in a way it has nothing to do with what is the purchase and sale of shares in the stock markets. It presents some differences that are very noticeable and that you must anticipate when hiring.