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Derivatives - Investment Choices

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Uploaded by on May 3, 2008

Derivatives are futures and options...and they're so versatile -- they can work for both Johnny Danger AND Nervous Nelly. Intrigued? Here's more ... Johnny Danger investors use derivatives for their leverage. Because derivative prices are volatile, Johnny can lose a lot of money or make a lot of money this way, very quickly. Nervous Nelly investors can use derivatives in a totally different way: To "protect" their portfolios from falling prices, lock in a great purchase price, or, for immediate income. Instant gratification. But with derivatives, it's all about timing...making it ideal for those of you glued to the ticker making day-to-day trading decisions...not the buy-and-hold types.

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