Comments on: What’s the fuss of Derivatives Investments? http://www.21wilsonstreet.com/archives/2008/05/whats-the-fuzz-of-derivatives-investments.html Wilson in pursuit of excellence Thu, 04 Dec 2008 20:39:11 +0000 http://wordpress.org/?v=2.6.3 By: deuts http://www.21wilsonstreet.com/archives/2008/05/whats-the-fuzz-of-derivatives-investments.html#comment-25 deuts Tue, 20 May 2008 01:51:28 +0000 http://www.21wilsonstreet.com/?p=7#comment-25 The one that usually initiates this abuse of derivative transactions are the banks. They're the ones offering these to companies, which the latter by themselves are not usually aware of the risks or their actual exposure subject of the hedge. Hey Mr. Wilson, your website is getting exciting huh? Keep 'em coming! The one that usually initiates this abuse of derivative transactions are the banks. They’re the ones offering these to companies, which the latter by themselves are not usually aware of the risks or their actual exposure subject of the hedge.

Hey Mr. Wilson, your website is getting exciting huh? Keep ‘em coming!

]]> By: Wilson http://www.21wilsonstreet.com/archives/2008/05/whats-the-fuzz-of-derivatives-investments.html#comment-24 Wilson Tue, 20 May 2008 01:09:29 +0000 http://www.21wilsonstreet.com/?p=7#comment-24 That's a brilliant idea Mr Advisor. However, you should keep in mind that if the contracts keep on losing it's like giving "liability" present to your loved ones. They may not like it. Maybe you can give a losing derivative position deliberately as a gift to your enemy. :) That’s a brilliant idea Mr Advisor. However, you should keep in mind that if the contracts keep on losing it’s like giving “liability” present to your loved ones. They may not like it. Maybe you can give a losing derivative position deliberately as a gift to your enemy. :)

]]> By: Roderick's Financial Advisor http://www.21wilsonstreet.com/archives/2008/05/whats-the-fuzz-of-derivatives-investments.html#comment-23 Roderick's Financial Advisor Tue, 20 May 2008 00:25:31 +0000 http://www.21wilsonstreet.com/?p=7#comment-23 Thankyou for your insightful explanation of derivatives. I am aware of another use for them as well. Since they require little up front outlay, they make a great gift to give to a friend or loved one on a special occaison. You could give your sweetheart 1000 US$1million/Peso FX Futures contracts for a fraction of the cost of an expensive diamon necklace. Plus, once you have transferred the contracts into her name, any daily mark to market gain will be earned by her, so it will be like the gift that keeps on giving. Of course, if you forecast unwisely, the contracts may lose money too, but heck, they are in her name now, so any losses are her problem. Thankyou for your insightful explanation of derivatives.

I am aware of another use for them as well. Since they require little up front outlay, they make a great gift to give to a friend or loved one on a special occaison.

You could give your sweetheart 1000 US$1million/Peso FX Futures contracts for a fraction of the cost of an expensive diamon necklace. Plus, once you have transferred the contracts into her name, any daily mark to market gain will be earned by her, so it will be like the gift that keeps on giving.
Of course, if you forecast unwisely, the contracts may lose money too, but heck, they are in her name now, so any losses are her problem.

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