Sophisticated instruments that let you amplify opportunities, manage risk and diversify strategies across global markets
Financial derivatives are contracts whose value derives from an underlying asset, such as stocks, indices, currencies, commodities, interest rates or even cryptocurrencies.
Unlike buying the asset outright, derivatives let you speculate on its future price or protect yourself against adverse market movements without having to own the asset physically.
Discover the four derivative instruments most widely used in global financial markets
Standardized contracts that obligate you to buy or sell an asset on a specific future date at a predetermined price.
Contracts that grant the right, but not the obligation, to buy (Call) or sell (Put) an asset at a specific price before an expiration date.
Customized contracts between two parties to buy or sell an asset on a future date at a price agreed today.
Agreements to exchange cash flows or financial assets between two parties over a set period of time.
Like any sophisticated financial instrument, derivatives offer exceptional opportunities but also carry risks
Protect your portfolio against adverse market movements by locking in future prices and reducing volatility.
Control large positions with limited capital, maximizing the return potential on your initial investment.
Access multiple markets and sectors without having to buy the underlying assets directly.
Generate gains in both rising and falling markets through long or short strategies.
The leading derivatives trade in markets with millions of transactions every day.
The same leverage that increases gains can also magnify losses, even beyond your initial investment.
They require specialized knowledge of valuation, strategy and risk management in order to trade effectively.
In OTC derivatives such as forwards and swaps, there is a risk that the other party fails to meet its obligations.
Prices can move sharply over short periods, especially close to expiration.
Options lose value as the expiration date approaches, even if the underlying asset does not move.
Financial derivatives are complex, high-risk instruments. Before trading derivatives, make sure you fully understand how they work, the implications of leverage and the risks involved.
At STX Markets, we provide you with ongoing training, technical and fundamental analysis, and strategic support so that you can make informed decisions and manage your risk exposure responsibly.
