BENEFITS OF FINANCIAL DERIVATIVES

Aleksandra Stankovska () and Savica Dimitrieska ()
Additional contact information
Aleksandra Stankovska: European University – Republic of Macedonia, Skopje
Savica Dimitrieska: European University – Republic of Macedonia, Skopje

Economics and Management, 2017, vol. 13, issue 1, 27-37

Abstract: This paper presents an aggregated picture of financial derivatives industry activity, illustrating key trends, speculation, hedging and risk management. Derivatives are financial contracts that are designed to create market price exposure to changes in an underlying commodity, assets or event. The use of derivative instruments in corporate risk management has grown rapidly in recent years, caused partly by financial deregulation and partly by the success of the financial industry in designing a great variety of OTC and exchange-traded contracts. The innovation and growth of derivative instruments was the result of satisfaction of demand of market players for a means to hedge price risk. Derivatives have become an integral part of the financial markets because they can serve several economic functions. Derivatives can serve as investment vehicles and can provide a way to make bets that are highly leveraged and tailored to a specific view.

Keywords: financial derivatives; speculation; hedging & risk management (search for similar items in EconPapers)
JEL-codes: E44 G1 G18 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://em.swu.bg/images/SpisanieIkonomikaupload/Sp ... vica_Dimitrieska.pdf (application/pdf)
http://em.swu.bg/index.php?option=com_content&view ... d=28:2017&Itemid=116 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:neo:journl:v:13:y:2017:i:1:p:27-37

Access Statistics for this article

More articles in Economics and Management from Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD Contact information at EDIRC.
Bibliographic data for series maintained by Vladislav Krastev ().