Other types of derivative products

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Optional derivatives
These derivatives do not have a firm commitment. They can be call options. This will then allow you to buy the underlying asset. Put options work on the same principle, but you then buy the right to sell the security at a fixed price.


It is also possible to find different derivative products such as warrants and turbos. The warrant is mainly intended for individual investors. The turbo sets up a knock-out barrier that, if the price increases, will make you money.

How can derivatives be used?
Derivatives allow you to rcs database invest in many markets. You will then have to place a purchase order. Likewise if you want to sell them. To properly use a derivative product which, let us remember, allows you to properly manage economic and financial risks, you will have to set the price of the asset from the start. Choosing long-term derivative products allows you to limit financial risk effectively.

This financial derivative product can also be used as a speculative product. The premium to be paid to acquire them will only represent a small fraction (around 5%) of the underlying.

Tips for operating successfully in the derivatives market
Before even investing in derivative products, you must take into account various tips to make your investments as successful as possible.

Think carefully and choose your derivatives
There is indeed a very wide choice in the field of derivatives market, and it is obviously essential to choose well to make money. You will therefore have to think before investing to be sure to make profits. Avoid derivatives that have not proven themselves if you are not an expert in the financial market. Choose solid derivatives, such as raw materials, for example. You will then be able to find financial advantages in investing in carefully chosen financial securities. Remember to take a look at the history of the derivative. You will be able to see if it has made money.

Choosing derivatives on regulated markets
By choosing regulated markets , you will have a series of stock options at different prices and different maturities. You will then be able to follow "live" the evolution of the valuation during the day. This is a big advantage if you are not an expert in the field. You will then be able to decide to resell your derivatives if they fall significantly and thus lose less money.

Get help
If you want to invest in derivatives, getting help can be very interesting. You can then contact a qualified and specialized intermediary. They will provide you with valuable advice and will have the necessary skills. This could be a bank, an investment firm or a broker. In this case, choose an online broker that you can contact easily. Check that the person you are going to work with has a master's degree in trading, for example. They will therefore have the necessary skills to help you as best as possible in this area.

It should be noted that the Euronext stock exchange has established partnerships with various financial intermediaries who