Blog Entropía Financiera

Most of the world's 500 largest companies use derivatives to lower their financial risks. A Derivative is a financial contract which their own value depending in the type of asset chosen and the change on the market price value of them.

Derivatives are used like business tools in companies around the world; businesses use them to protect against volatility; investors use them to protect it selves against future loss and traders (speculators) try to make huge profits with little investment.