Derivatives | Marketplace Whiteboard

[@Hannahbenowitz]

The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

[@HildaBennet]

In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.

[@FinnBraylon]

True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.

[@JosephineKenney]

I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?

[@FinnBraylon]

Her name is “Sonya Lee Mitchell” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@JosephineKenney]

I have googled her and she has impressive credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@jchi1ds]

The smartest people explain things in the simplest terms.

[@remlatzargonix1329]

John Childs ...yes, he is very good....I say this as someone with post graduate degrees in this stuff, and I really enjoyed his explanations!

[@onenationunderduress8994]

I wouldn’t say the ‘smartest people.’ I would say one who truly understands something can explain it in simple terms.

[@TechieTard]

ooOOOhhh, I get it!

[@timothyphoenix4209]

@@onenationunderduress8994 Or ones that are simply good at educating.

[@johnboykin3128]

Monetized contracts

[@mcf-662]

You're arguably the only person on KZbin who doesn't waste even a nanosecond to advertise his channel and gets right into the incredibly worthy content. I LOVE your videos! Thank you so very much ♥️

[@DrRock2009]

Antares 555 FYI: Dr Berg is the same....

[@herp_derp]

His videos are from the golden age of Youtubr. This stuff really wasn't common back then.

[@van91nq]

so true

[@QOOQ-ew3uq]

If you like this you'll like Kai Rysdall and the Marketplace team every weekday

[@oussamachouichi5677]

And sadly pays a price for that, once he made a presentation of his book at Google, asked the audience if they know the channel almost not a soul replied. Somehow, internet favors the fake and the pretentious over the straight-to-the-point people.

[@mayacho4910]

The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?

[@mariahhayes5089]

For the average person, these techniques are rather demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.

[@raymondbarnes5264]

Working with a reputable investing coach is now the greatest market approach. Since a while ago, I've been in contact with a coach, mostly because I don't have the breadth of knowledge or mental fortitude to handle these recurrent market conditions. I made almost $700k during this downturn, demonstrating that the market is more complex than most people realize.

[@helenoliver4838]

@@raymondbarnes5264 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?

[@raymondbarnes5264]

@@helenoliver4838 My consultant is 'MARTHA ALONSO HARA" I found her on a CNBC interview where she was featured and reached out to her afterwards. You can look her up online, i basically follow her trade pattern.

[@helenoliver4838]

@@raymondbarnes5264 Found her webpage. I wrote her a message, hopefully she responds, I plan for this 2023 to be my year of financial success.

[@MrOmniblast]

I was looking for calculus, but...I think I'll start a drug empire now; thanks!

[@FireVortex720]

lmao nice one

[@kebman]

I'm going for a Turkey empire myself. I'm going to RULE Thanks Giving!

[@dariknour6051]

MrOmniblast 😂😂😂

[@davidc2837]

lmfao

[@henningokholm7912]

Notice how 300 is mentioned and in the second example 20 "times" 15 is the same. How cool is that.

[@gordonraddy]

Great Down-to-Earth Examples nicely explained by someone who actually really looks like he wants to teach people. Best I came across! Keep it up and thanks a lot.

[@toddlavigne6441]

totally agree....this guy is a great teacher

[@oneandone2744]

So true! You know Ray Diallo (?) and Steve Ackman are pretty good too.

[@monpesh9732]

This is the best explanation I have ever come across. Well done

[@Shreyankit9091]

Sir , you are a champion . The world needs teachers like you . Kudos to the videos !!

[@dianamcmanus3789]

I am only 13 and I understood everything in your video! You are amazing at explaining economics!

[@sunkanmibero]

I love it when he tosses the maker. beautifully well explained. #dropthemic.

[@express375]

Who cares about student fees,you can learn anything for free. Thanks

[@oneandone2744]

The web, YT should technically make college obsolete.

[@ptnibin123456]

@Pet C It doesn't exactly make college obsolete if you are looking for a job, but it does greatly help if you are self-employed or running a business, increasing your knowledge!!

[@jay-xj1om]

@Pat C Actually, if you bust your ass you can do an external PhD by just handing in an original dissertation. Professors have the ability to grant PhDs to people who have no previous degrees if they prove themselves competent enough on an "exception basis" (exception because nobody does this).

[@jay-xj1om]

@@ptnibin123456 It does if you work on a portfolio of projects. No need for college. And I say that as a Mathematician. University is nice if you want structure and to be spoon-fed, but not at US prices. UK is borderline, getting shittier by the year (in terms of quality and in terms of the tuition hike that happened about a decade back). Germany is nice to leech in term of value and they'll happily bend over and subvention you with their insane taxes. US college is borderline fraud, I wouldn't even consider it. US universities I don't know, but the prices are still ludicrous.

[@workwithnature]

great explanation. So basically the counter party risk regarding derivatives are that underlying assets can be worth a lot less at a later date.

[@nikon800]

That's not counter party risk. If somehow when the time comes and the seller of the future/forward cannot deliver the product, that is counter party risk.

[@GaiusGaiusGaius]

Terry is now a vegetarian.

[@meticulousgeek]

Even 10 years later I learned more economics from watching a few of these videos than all of my years in high school.

[@RyanGrubeProductions]

You are literally the best finance professor i have ever listened to. I don't think i have ever told an individual this... Your diagrams are amazingly clear and i like how you use a diagram to explain the whole concept. You really know what your talking about and i can't say i was bored listening to this video one bit. Thanks for the great video! also i was wondering if it is possible if you could make a video on algorithms ?

[@jabirdada9473]

Hi Patty, I'm scheduled to attend a seminar covering various aspects of Commodity Derivatives, and I was quite uninformed about it until watching this 10-minute session. I'm grateful for the insight it provided. Thanks bro!

[@sophosalpha]

Your Confidence and communication are awesome, Paddy

[@PJDuro]

Great analogy and very clear intro to derivatives!

[@samdiesel2000]

finally found a true comment, instead of attention seeking dandies, in a vain effort of trying to spark off wit and sarcasm .

[@_Junkers]

+Marketplace APM What's great about your explanations is that you don't rely on jargon. Most other tutorials will reference concepts as if you already know what they are. This is great for newbies. Thanks for this!

[@constantinmubadibantukalon4218]

I am proud of you. You help me understand how derivatives work. Thank you!

[@khankrum1]

I will have to watch this a couple of times. When I am not settled with an evenings beer!

[@potawatomi100]

Really well done and expertly narrated.

[@someoneelse.2252]

Appreciation from Canada for your easy to understand video. Thumbs up .

[@Invest-qh3jh]

This was really easy to understand. Thank you for simplifying it so much!

[@000hariviv]

Binge watching these wonderful videos. Paddy Hirsch and chill.

[@arockdurai5110]

Well explained and a very simple example to understand. Couldn't believe this is a decade old video.

[@brettymike]

Very well explained , the whole system is an insane house of cards - and the roof and walls are made made of paper ,waiting for the perfect storm. Mean while , the farmers work their nuts off being the only valuable cogs in the machine.

[@abdallababikir4473]

I watched seven minutes before realizing this isn't about math derivatives...

[@rickyreyes30]

This is the same concept of a derivative. It's the change of the underlying asset over time.

[@craigjoyner9857]

No F’(x) here.

[@cameronbrooks1141]

This was great, thanks for explain this sort of vague concept in a way I fully understand now

[@farisallawati]

Very simple and smooth !! keep them coming please

[@schopen-hauer]

paper money is a derivative of gold, derivatives are nothing but promises bets and insurances.

[@doodad77]

Paper currency is fiat, not really a derivative much less backed or supported by Gold; modern monetary theory among other scams have distorted & corrupted socio-economics.

[@schopen-hauer]

@@doodad77 derivatives, derive their value from real assets, fiat money started as a derivative from gold today is supported by labour, taxes, oil and war..

[@samreagan6292]

Harry Lagom Or maybe gold is 700x undervalued?

[@samreagan6292]

70,000x undervalued

[@samreagan6292]

@Harry Lagom Quickly, think about a prison economy. Cigarettes, snacks, com money, time. Their is a value to everything in prison that is scarce and people are not using gold to facilitate those transactions. Golds value is historic, because historically you can't make something scarce, someone will find a way to make a forgery or it ends up not really a scarce thing. The things that have value to different people are based strictly on their scarcity. and if nothing else was scarce: US dollars, Euros, Yuan, Bitcoin. If they ALL lost their scarcity, then yes I believe that Gold would be 700,000 times it's current value; because of it's incredible scarcity globally. But that's not going to happen unless we get another Carrington event, so I would not worry about it. Even if we had such an event look at the prison economy; would we be trading gold coins or would we be trading food and weapons? The ultra elite of a new world order would work with gold, we would not.

[@shreya978]

Thanks for wonderful presentation..Can you please make vedio on types of swaps...ie. interest rate swap, currency swap, commodity swap and equity Index swap...

[@Chrisinsocal]

I’ve been in the financial services industry for almost a decade and I love how this man explains otherwise very complex instruments and concepts. I listen to it so that I can keep that concept in mind when explaining these concepts to clients. Great channel!

[@Chrisinsocal]

Luke Daly We’re everywhere! Lol

[@prashantpacific2575]

Absolutely brilliant. Thanks man.

[@nicolasbouyiouclis4726]

Very good and simple explanation! Thanks bod...

[@remidanvin4057]

Great clear explanation as usual

[@mohabuleenhaneen8315]

This is a great teacher

[@chaseramos4865]

was expecting a calculus explanation. I'm still happy I clicked

[@got2bharmony]

Brilliant teacher, super choices of examples and injection of some humour.

[@21580anwar]

Great lecture...thanx.i now understand the concepts...

[@legacyal3489]

that's great teaching, I wish you kept with the videos

[@tianhxu]

This is very clear thank you. Question: is a normal purchase also a technically a derivative - I give you £1 and you write a note promising to give me a turkey, not in a year, but right now, not very useful but is it still a derivative? Is a loan a derivative - I give you £1, you promise to give me £1.50, in a year's time?

[@sam7903]

@kajtova yes. he paid 50 bucks for the option to buy 20 turkeys at 15 dollars before november 23. To execute the option he pays 20*15= 300 dollars and will receive 20 turkeys in return. Do realize that the contract for 300 dollars to Bailey's farm, was a futures contract. The difference between the options and futures contract is that buyer has already paid for the turkeys. In the options contract the buyer, has the option to buy the turkeys.

[@ys2bfree35]

Thank you for making this video. I totally truly have a better understanding on how derivatives work now. Nicely done!.

[@sara55555saraable]

Amazing. Real Good Simple Example. A BIG THUMB’s up. Wondering (wishing) if you have videos on financial markets / Trade Life cycle e.t.c

[@ashakelahi9879]

Great explanation man! just love t. After seeing this presentation I subscribe to the channel. Good Job!

[@gamofa2]

I have listened to about five different lecturers without understanding what derivative is but this is the one that has been explained smartly.

[@j.p.montpellier3834]

Well done....True intelligence iis the genesis to simple explanation and ubiquitous understanding.

[@BigBusRecords]

great video. good and clear! wish they all were as clearly explained

[@patrickgathara8757]

i was reeling badly and needing a drink trying to understand wall street until i stumbled upon this legend, thank you good sir!

[@oneandone2744]

I enjoyed the story about Bruce Kovner reading "The history of Interest Rates" to get started. He was driving a cab in the seventies, borrowed three thousand on his card to get started. His shock at making forty thousand in two days, and losing thirty thousand on fruit commodities the third day.

[@davidorsa4406]

To the point and well explained. Thank you Sir!!!

[@bdawg56kg]

The thing is you have to pay a premium for the option. Say a stock is trading at $50. Clearly an option to purchase the stock (call option) at $45 will have a higher premium than an option with strike price $60. So if you pay $3 for a $45 call, and the stock is at $46 at the expiration date, you would exercise the option, but stil lose $2. Options are basically used either to hedge risk or to speculate. The speculation part can be potentially dangerous, especially when bought on margin.

[@FloRykielRamos]

after looking at other videos, this really helped me alot. Thanks!!!

[@nanadapaah2930]

Fascinating explanation

[@ababbit7461]

What if Mr Bailey takes in 4 contracts and only has enough turkeys for 3 contracts? Mr Bailey hedges that one or more of the prepaid contracts will bail and not need the turkeys at all... Then what happens? Mr Bailey is in breech of contract, but there are not enough turkeys to fill all the contracts. Looks like KFC wins on Thanksgiving.

[@F.Krueger-cs4vk]

Awesome review , excellent explanations. Thankyou 👍🏻👌🏻👏🏻👏🏻👏🏻 👋 🇦🇺

[@rickcarrarini5696]

Thank you. Clear and concise

[@LukrecijaPav]

This video helped me a lot. Thanks

[@mplwnmp]

Love your videos, but afraid I will end up as an alcoholic...

[@sargedessy]

@Ben Dreis Derivatives are supposed to give people a way to hedge against fluctuations of prices. For eg; the turkey may cost less than $15 in the future, and the forward contract they agreed upon would benefit the farmer, while Terry secures the turkeys for thanksgiving. Of course, using an options contract in this case would benefit Terry more, since he may choose not to accept the delivery of the turkey in the future if supply is plentiful and prices of turkey in the markets are below $15; in which case he forfeits the $50 he paid for the option and purchase the turkey from the market instead. Although useful as a tool for risk management, it can be used for speculation as well. Why the need for complication? Such contracts exists since the birth of capitalism, and many businesses are able to benefit from it. For example, if you run a restaurant, you would usually place orders for your inventory in advance at a slated price. This is similar to a forward contract. The only difference is that people discovered they can strike gold by gambling with these contracts.

[@politicalislam8506]

Great explanation.

[@urbanverificationist]

The London interbank offer rate is an interest-rate benchmark for many other rates, from commercial loans to mortgages. Libor is also an important index for derivatives and is the most widely used interest rate in the world. Estimates of how much is tied to Libor vary from $350 trillion to $800 trillion. To put that in perspective, $350 trillion would pay for all U.S. government spending for 96 years. Turns out the LIBOR rate has be rigged. Major lawsuits are being filed.

[@xwgrace]

great and clear explanation

[@jefflbarnes1884]

Considering emotional buying and nation state communications attacks. How about the differentiation calculus derivative that shuts off the stock exchanges if an attack happens on the stockmarket by web attack because the pentagon can cut off the web having total spectral dominance. Same with election integrity.

[@angiec7079]

Love this. Taking the S7 in a week

[@meeral8703]

These videos are amazing, thank you!!!

[@cornelljones7660]

Some what nicely explain.

[@norrispg6085]

this is teaching...what I got from College was not - just a regurgitation of terminology without an explanation of what they were

[@oneandone2744]

Love it! That's the best explanation I've heard about derivatives in ages. There was an old saying "no one born before 1970's understands what derivatives are..".

[@larryhull2752]

I’ve never understood options. This man says one sentence and draws a pic and I completely see what’s going on

[@billpapier4298]

Budddy: you are teaching to yourself. SLOW DOWN!! I was a teacher and you have to give a little time to let what you are teaching to sink in

[@32nikhilpatel78]

Thank you for the information.

[@janepaul7811]

So well explained!! Thank you:)

[@inanme]

amazing I watched 10 times

[@peterponcedeleon3368]

Great explanation!!!

[@Trezker]

If the money was held in escrow until the turkeys are delivered, it would eliminate the counter party risk. If you don't get the promised turkeys, they original amount would be returned to the contract holder.

[@ryanlynch290]

In this example, how would the option be a hedge against the $300 loss? If Farmer Bailey can't produce the turkeys or absconds, Terry is still out $300. He's spent $50 on the option, but still has to pay $350 to Farmer Jones. So he's lost $350, in this example. Is some detail missing?

[@robd.153]

Just spitballing… but I think Terry loses his “$50” option if he doesn’t exercise it (if he doesn’t spend a second $300 to get Turkeys from Jones). As far as Bailey goes… Terry has to file a lawsuit against Bailey for breach of contract and $300 in damages … and if Bailey is out of business, he is likely in line with many other creditors and may only collection 10 cents of every dollar in bankruptcy situation (if that!).

[@davidsmith2356]

Best to just go and buy the Turkeys when you need them, and negotiate a discount on 10.

[@TheLivirus]

Terry will get his turkeys from Bailey farm on the date they agreed on, unless the farm goes bankrupt and can't deliver. If he had entered an option agreement with Jones farm, he can get his turkeys from there instead should Bailey farm be unable to deliver.

[@baddog5936]

When really the farmer should say "Piss off, get in line like everybody else, you twat".

[@mattslivestream]

Finally I understand options.

[@hammer-fn7gm]

The problem comes in if Mr. Jones has a bad year and was depending on Mr. Bailey for the turkeys and he had a bad year as well.

[@dreesunc]

Then we all have a bad decade 😏

[@habibashik5096]

well explained

[@bouncingbeachball]

Couldn't you explain it easier by just stating it is basically a Pre-Order? Pre ordering GTA 5, not

[@benzonabendo1301]

Does anyone know what is the managerial discipling theory of hostile takeovers? thanks

[@BIGGOODBOY]

the whole turkey thing made it more confusing

[@peterelvis9207]

We keep watching videos on trading while others make huge profit o daily basis?

[@sapiosexual3316]

Grow some balls to throw some money on it

[@themoon8457]

Exactly the point. I wish I could convert my comments to earnings

[@peterelvis9207]

@@themoon8457 you can always say that again. Wish without working is always a dream that won't come through.

[@peterelvis9207]

Forex trading has been my major source of income aside my work. I make huge profit from trading with the assistance of Mr harper James

[@oceanicteddy]

Well explained

[@staceya.775]

10:01 lol mic drop haha Very well explained though. I'm gonna subsribe.

[@cameronbrooks1141]

You briefly mentioned “the derivative exchanges in japan” and now that you mention that, most derivative exchanges I am aware of, except for CME, are often based in Japan or China. Do you have any content going into this a bit more- sort of the regulations and that of the derivative exchange markets...I am interested in that whole history of how that came to be...I suspect this is why Japan and China are such a hot bed for cryptocurrency markets, which are largely perpetual swaps.

[@renzolujan1575]

This is so greatly explained! Your page has become my go-to as I’m trying to understand these terms. Thank you!

[@meiyokechan1396]

Me too

[@DarkSide-vf4wb]

Hey you look kinda like Mr. Robert De Niro. Thanks for the lesson by the way, it's really on point!

[@dougcrescimanno]

Really enjoying these white board lessons. Thank you for sharing!

[@robertwiseman6978]

Excellent!

[@shawn_car]

Will always think of turkeys now when I think of derivatives. Thanks for the simple and fantastic explanation!

[@dishesdealer417]

Thank you, that makes perfect sense, however, can you now explain why all of these things might fail all at once and thus create an economic catastophe that everyone says is coming. Because apparently derivatives ARE based on some real underlying good, so why would they all fail at the same time? If they are based on interest rates or an assumption that housing will always gain in value or that markets wll always go up & then they don't, then that makes sense.

[@TheDrewrules]

perfectly presented

[@daywalker5902]

Thanks very much for your response. That being said, what do you think about the banks that have been subpoenaed by US and European authorities? Do you find it strange that these suspected banks are also the largest contributors to Mitt Romney's 2012 presidential campaign AND were the biggest contributors to Obama in 2008? Is there anyway to find out how much money these institutions received from bailouts other funding from the government, federal reserve or other institutions abroad? TIA

[@DaveBegotka]

Money that makes money just because its money is like a bomb.....duh!

[@abdulrazzaq9726]

Upload complete videos lecturers Math for Economics, statistics for Economics for graduate and post graduate classes comprehensive that cover whole syllabus.