devid
173 posts
Oct 29, 2022
2:27 AM
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Derivatives are contracts between two parties. One party agrees to pay the other if something happens. An example would be if you bet me that the sun will rise tomorrow morning. You agree to pay me if the sun rises. In return I agree to pay you if the sun doesn't rise. That way neither of us loses anything. Derivatives are useful because they allow investors to speculate without actually having to own the asset.
Here is a direct link: 45 degree angle
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