Questions tagged [finance]

Leonardo Wed Jun 05 2024 | 6 answers 1859

Could you kindly explain, in layman's terms, how does one generate income from derivatives? I've heard about them but am still hazy on the specifics. Are derivatives some sort of risky bets or do they offer more stable returns? Could you provide an example or two to illustrate how they work in practice? Also, what are the prerequisites for someone interested in trading derivatives? Is it suitable for beginners, or should I have some prior knowledge in finance? Lastly, how does one manage the risks associated with derivative trading? Thank you for your assistance in clarifying this topic for me.

Margherita Wed Jun 05 2024 | 7 answers 1414

Could you kindly explain what the term '100,000 contract size' signifies in the context of cryptocurrency trading? I'm curious to understand its implications in terms of leverage, risk management, and overall trading strategy. Could you also clarify how this contract size affects the potential profits or losses involved in a trade? Additionally, is there a standard for determining contract sizes in crypto trading, or does it vary based on the exchange or asset being traded? Thank you for your insights on this matter.

EmmaWatson Wed Jun 05 2024 | 5 answers 939

Could you please explain, in your professional opinion, why the vast majority of traders, approximately 95% of them, end up losing? Is it due to a lack of knowledge or inadequate skills? Or could it be a result of overtrading, emotional trading, or perhaps poor risk management? I'm particularly interested in understanding the psychological factors that might contribute to these losses. How can traders overcome these challenges and increase their chances of success in the cryptocurrency and finance markets? Your insights would be greatly appreciated.

CryptoTrader Wed Jun 05 2024 | 6 answers 1516

Could you please provide some examples of derivatives? I'm interested in understanding the different types of derivatives that exist in the financial market. Also, could you explain how these derivatives are used and what roles they play in hedging risks or speculating on asset prices? It would be helpful if you could provide specific examples from real-world scenarios to illustrate their applications and functions. Thank you for your assistance in clarifying this topic for me.

Sara Wed Jun 05 2024 | 6 answers 1562

Could you please explain which derivative instrument currently holds the top spot as the most actively traded in the global market? I'm particularly interested in understanding its popularity and the reasons behind its widespread use. Additionally, could you also provide some insights into the characteristics and features that make this derivative stand out from the rest? It would be helpful if you could compare it with other derivatives to give a clearer picture of its significance in the financial world. Thank you for your assistance in clarifying this matter.