Derivative Investments

 

What is a derivative?

A derivative is a financial product whose value is derived from the value of another financial product. Types of derivatives available to investors include options and warrants. Investors may use equity options and warrants to protect the value of their securities, provide extra income or to speculate.

Risks of derivatives

Like any investments derivatives involve some risk, however you can mange your derivative portfolio to maximise the benefits and minimise the risk. The main risk with derivatives are margin calls associated with market volatility.

 

Wilson HTM Investment Group provides advice on:

Exchange Traded Options

An option is a contract between two parties giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a particular price on or before a particular date.

Warrants

Warrants give you the option of buying or selling an underlying security at a fixed price at a specified future date for a comparatively small investment.

 

To invest in derivatives call 1300 655 015 or talk to your adviser today.