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Hedging/Derivatives (1 Viewer)

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Gavvvvvin

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Can someone please explain the different kinds of hedging and derivatives? The textbook im using makes no sense :(
 

luke_j1984

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Derivatives a form of hedging???

Just wondering...
Are derivatives a form of hedging??? Because the forward exchange contract sounds exactly the same as hedging?
 

Seraph

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Well derivatives are financial hedging

they are derived from the value of an asset

And a forward exchange contract is a derivative

Also i never really thought about this , but Insurance is essentially a Derivative... or at least hedging :p
 

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