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by 1e-9
2517 days ago
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"Just like how taking the derivative of a function gives you the slope, a derivative in finance is a bet on the rate of change of the value of a stock, or a bond, or an index." No. That is just completely wrong. A derivative is a financial instrument that derives value from other things. As an aside, the derivatives market is far bigger than the stock market. |
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The investable universe looks something like that:
https://imgur.com/a/68U3LsZ