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Questions and Answers
Derivative instruments are mainly focused on minimizing risks for investors.
Derivative instruments are mainly focused on minimizing risks for investors.
False
Futures Option is a combination of a future and a bond.
Futures Option is a combination of a future and a bond.
False
Over-the-counter (OTC) derivatives are standardized contracts that trade on an exchange.
Over-the-counter (OTC) derivatives are standardized contracts that trade on an exchange.
False
The major players in derivative markets include only individual investors.
The major players in derivative markets include only individual investors.
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OTC derivatives are traded through public exchanges controlled by banking institutions.
OTC derivatives are traded through public exchanges controlled by banking institutions.
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Investor professionals use derivative instruments mainly to reduce risks and optimize business profits.
Investor professionals use derivative instruments mainly to reduce risks and optimize business profits.
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Risks associated with derivative instruments include Credit Risk, also known as Operational Risk.
Risks associated with derivative instruments include Credit Risk, also known as Operational Risk.
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Derivative instruments enable users to maximize their profits by monitoring asset prices and increasing risks.
Derivative instruments enable users to maximize their profits by monitoring asset prices and increasing risks.
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Derivative instruments have become an essential tool for investment and risk management due to their innovation and resilience.
Derivative instruments have become an essential tool for investment and risk management due to their innovation and resilience.
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ETD derivatives are created and traded through individual transactions between two parties without involving public markets.
ETD derivatives are created and traded through individual transactions between two parties without involving public markets.
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What is a key advantage of OTC derivatives compared to ETDs?
What is a key advantage of OTC derivatives compared to ETDs?
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Which type of derivatives relies on bilateral trust without standardized exchange-imposed rules?
Which type of derivatives relies on bilateral trust without standardized exchange-imposed rules?
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What is a significant challenge associated with trading OTC derivatives?
What is a significant challenge associated with trading OTC derivatives?
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How do Exchange-Traded Derivatives (ETDs) differ from OTC derivatives?
How do Exchange-Traded Derivatives (ETDs) differ from OTC derivatives?
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What is a major advantage of OTC derivatives over ETD derivatives?
What is a major advantage of OTC derivatives over ETD derivatives?
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Why is risk management particularly crucial in the realm of OTC derivatives compared to ETD derivatives?
Why is risk management particularly crucial in the realm of OTC derivatives compared to ETD derivatives?
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Which market players are more likely to engage in ETD derivatives trading?
Which market players are more likely to engage in ETD derivatives trading?
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What regulatory act aims to provide increased oversight of OTC derivatives trading?
What regulatory act aims to provide increased oversight of OTC derivatives trading?
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How do ETD derivatives differ from OTC derivatives in terms of meeting specific needs?
How do ETD derivatives differ from OTC derivatives in terms of meeting specific needs?
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Study Notes
Unraveling Derivative Instruments: A Comprehensive Guide
Derivative instruments are not just financial mysteries hidden in Wall Street jargon. They're powerful tools that can help you navigate financial markets and manage risks. In this article, we'll dive into the world of derivatives, starting with their definition and moving on to their diverse categories, evolution, and the major players and risks involved in this dynamic financial arena.
(i) Apakah instrumen derivatif?
Instrumen derivatif adalah barang yang harga atau nilainya bergantung secara langsung pada nilai aset lain, biasanya aktiva utama (seperti saham, emas, dan kurs mata uang). Derivative instruments are financial contracts whose value is derived from an underlying asset, such as equities, gold, or currency exchange rates.
(ii) Instrumen derivatif umum
Derivative instruments dapat dibagi menjadi dua kategori utama:
- Option (Opsyon) - Saham yang menyediakan hak tetap membeli (kali ini disebut Call Option) atau menjual (Put Option) aset tertentu pada tanggal yang ditentukan pada harga yang ditentukan.
- Future (Future) - Saham yang membantu investor mengawasi harga aset tertentu pada suatu waktu tertentu dengan membayar deposit ketika mengawasi persaingan.
- Futures Option (Future Opsi) - Kombinasi antara future dan option, yang memungkinkan investor memilih untuk membeli atau menjual aset tertentu pada suatu waktu tertentu dengan harga yang ditentukan.
- Swap (Swap) - Saham yang melakukan perubahan nilai antara dua aset yang berbeda.
- Forwards (Forward) - Saham yang membantu investor mengawasi harga aset tertentu pada suatu waktu tertentu tanpa harus membayar deposit.
(iii) Perkembangan/evolusi instrumen derivatif
Derivatives evolusi dari kontrak-kontrak yang sebenarnya sederhana di pasar tawar-menawar sekitar abad ke-19. Pada abad ke-20, kontrak ini telah berkembang menjadi berbagai jenis dan banyak digunakan oleh pemain pasar lokal dan internasional.
(iv) Derivatif OTC vs. ETD
- OTC (Over-the-Counter) - Derivatives yang dibuat dan ditransaksi secara individu antara dua pihak tanpa melalui perbankan atau pasar publik.
- ETD (Exchange-Traded Derivatives) - Derivatives yang dibuat dan ditransaksi melalui pasar publik yang dikendalikan oleh perbankan atau komisi valas.
(v) Pemain/pengguna utama pasaran derivatif
Pemain utama pasaran derivatif termasuk:
- Perusahaan-perusahaan - Menggunakan derivative instruments untuk mengawasi harga aset, mengurangi risiko, dan mengoptimalkan keuntungan bisnis.
- Investor profesional - Menggunakan derivative instruments untuk mengawasi harga aset, memanfaatkan hak-hak opional, dan mengoptimalkan keuntungan investasi.
- Bank-bank - Menggunakan derivative instruments untuk mengawasi dan mengurangi risiko, serta memberikan layanan kepada pembeli dan penjual.
(vi) Jenis risiko
Derivative instruments mempunyai beberapa jenis risiko yang perlu dipertimbangkan:
- Risiko markup (Markup Risk) - Risiko kenaikan harga kontrak atau kenaikan harga aset yang mempengaruhi kontrak.
- Risiko market (Market Risk) - Risiko kenaikan harga atau turun harga pasar secara umum yang mempengaruhi kontrak.
- Risiko korporat (Credit Risk) - Risiko kecurangan eksekutor kontrak (pemegang kontrak atau bank).
- Risiko operasional (Operational Risk) - Risiko kesalahan dalam proses transaksi dan penyelesaian kontrak.
- Risiko informasi (Information Risk) - Risiko tidak memiliki akses atau tidak memahami informasi penting yang mempengaruhi kontrak.
Derivative instruments memungkinkan pengguna memanfaatkan hak-hak yang mereka miliki dan memaksimalkan keuntungan dengan mengawasi harga aset dan mengurangi risiko. Tahap inovasi dalam dunia finansial dan ketahannya membuat derivative instruments telah menjadi salah satu alat penting untuk investasi dan manajemen risiko. Dengan mengetahui aspek utama derivative instruments, kita dapat lebih baik mengawasi dan mengoptimalkan infrastruktur pasaran ini.
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Description
Learn about derivative instruments, their categories, evolution, major players, and risks involved in the dynamic financial market. Dive into the definition of derivatives, common types like options and futures, and the key players such as companies, professional investors, and banks. Understand the risks associated with derivative instruments and how they can be used to manage risks and maximize profits.
