Pietro
Wed Jun 05 2024
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7 answers
1195
What are the pros and cons of derivatives?
Could you please elaborate on the advantages and disadvantages of derivatives? I'm particularly interested in understanding how they can be used for hedging risks and enhancing returns, but also concerned about the potential for high leverage and associated risks. Could you provide some examples or scenarios where derivatives have been effectively used, as well as instances where they may have led to losses? Additionally, are there any specific regulatory measures or best practices that investors should be aware of when dealing with derivatives? Thank you for your insights.
