Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Jay Ray who wrote (2566)	9/29/1998 12:20:00 PM
From: ibrandybuck	Read Replies (1) \| Respond to of 7247

<and derivatives are usually stock options?> Stock options are indeed a derivative, but one of the most straight-forward and easiest to understand. Futures are also derivatives. The complex derivatives based on bonds, currencies, indices, and interest rates (both positions and futures) are several layers removed from the underlying securities. These are the ones that've been getting the fancy players into trouble recently, as I understand it. Combine arcane, risky plays with extreme leverage, and these guys are just plain old speculators, turning the meaning of "hedge" on its ear.