The Use of Futures in the Protection in Financial Market

Zoran Grubisic, Darko Vuković () and Boban Brankovic

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2012, vol. 58, issue 01

Abstract: The financial derivatives are derived securities base their value from assets located in their basis. These are liquid contracts whose value depends directly on the value of the assets in their basis. Futures are among the derivates because they create to another, the basic financial assets. Futures is one of risk protection instruments - hedging. Hedging is a transaction which reduces or eliminates the risk present in the business derived in securities. The risk is transferred from those who are willing to pay to avoid it to those who want to take a risk in the hope of profit. Most frequently are used hedging futures strategies and long-term interest rate futures and hedging strategies stock market indexes.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:288618

DOI: 10.22004/ag.econ.288618

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