What are Derivatives ?

An introduction to Derivatives.

[@BigBroJay]

For those wondering, the derivative is the contract. Considering that the contract is a future, it has a market value and therefore can be traded at a certain price. This price depends on the value of the cows at a certain point in time. Simply put, a derivative is a financial instrument whose value depends on something else (assets, equities, etc.) In this case, the "something else" is represented by the cows.

[@mohankrishna8416]

Good one :)

[@stevendumont4382]

Thank you Eddie! I now know what derivatives are. Simple and to the point!

[@JuniorTennis]

Eddy M. Which contract? Their era eyes here. The first one is the Futures and the second one is the Stop Loss. Which of those two is the Derivative?

[@jamessanpedro223]

how the hell is this related to the slope of a tangent

[@blast2686]

The cows represent the shares

[@courtneyjennette8832]

I was just trying to pass my AP Calculus class and we ended up with cows.

[@vikashdhariyal4152]

Did you passed the test mate?

[@franklinowen3074]

simple and easy to understand thou

[@TheBeastech]

He's talking about derivatives in the finance setting for all of you maths geniuses out there.

[@s_v2238]

🤣🤣🤣🤣🤣

[@AneesKhan-in3zy]

math students trolled.

[@aldrinbenny5412]

So true. I've just watched this video when I was searching for calculus derivatives

[@anantanarayanmishra8818]

@@aldrinbenny5412 same here 🤣

[@shovan655]

🤣🤣🤣🤡🤡🤡

[@Al-Hussainy]

Damn i watched the comment before seeing the vid thanks for the warning😂

[@lazyxgaming444]

Thanks for the comment . It saved me from being trolled .

[@elias.n5616]

I spent every second in this video hoping that the next second would be about calculus derivatives.

[@troythegreat777]

Derivatives are also a term in the Financial world

[@Hawktotalwar]

+Jo Im sadly a lot of highschool idiots are thinking of the math version

[@ishwar8119]

+Curtis I ya me too i thought about the math version(!) LOL

[@RajeshKDudnath]

Troy Masonbhavadhajjan

[@anonymous__K]

yes

[@uvasangovender5120]

Good

[@Hawktotalwar]

haha the highschool math students getting so mad

[@chandlerkeaton1337]

Curtis I i came here to learn what a derivative is to get ahead in calculus 😂😂 dang it

[@nermintamim7107]

Bruv im just as mad and im 11

[@rostrainco]

Excellent in providing a clear and simple illustration of futures. Love the Indian accent. Thanks for doing this.Keep it up!

[@corbangurl]

I was struggling with this topic in my accounting class. This video was very helpful and gave me great mental hooks. Thank you for making it! Its funny and very informal!!!!!!

[@Migaldamez]

Made it 1:42 before I realized that I was looking at the wrong kind of derivatives. But this was still informative and helpful

[@Brismo7]

As an American, how can I invest in these cows?

[@liambury529]

We have cows in America...

[@redeye1267]

LOL

[@thealonepunk]

Brismo Just tie a rope to a feminist. same thing.

[@JackMeoff46]

Iron Armada I’ve met fine feminists

[@bailord8249]

You buy Chainlink while it's still below $1 in 2019.

[@juanma132]

Demand tends to decrease when mad cow disease is present, forcing the price of meat down. People tend to generalize, and rather resort to a substitute good when such a disease is present. I understand your point, but think of it from the customer all the way to the supplier. It's a chain reaction which will lead to a lower price for the cows.If customers wouldn't take such cautious reactions towards this disease then the possibility of paying a higher price for healthy meat would arise.

[@sagarsuryawanshi8735]

This is the best example i have seen so far, easily understandable.

[@hemarishu4664]

I haven't understand the term derivatives for quite a long time, but u made it clear. Wonderful explanation. Tq

[@MonaHamood]

Thank you very much . It's a new term for me .. I've never heard about it . But you did explain it very well Mashallah Thanks again

[@timbalandisblack]

For those of you looking at this video hoping for calculus help, stop watching. This is the financial definition for derivative. Also, this is more of an explanation of a futures contract than it is a definition of a derivative. The basic thing to know is that a derivative is a financial instrument whose value depends on another underlying asset. In this case, the futures contract's value depends on another asset, which is the cows in this case. Hope that helps everyone!

[@AM-ok5lf]

I got here looking for the mathematician term of "derivatives" This is the financial one -_- but it was interesting. I am learning English and I admit that I am not completely good at it... But starting from the first 5 seconds of the video I knew that It was and Indian guy hahahaha. I asked myself. Of course, this video is aimed to western audiences but what is an Indian Guys using an Example his "sacred" animals. In as you have seen the example was refereed to sell them to eat, India Mcdonalds are not allowed to use bovine meat on their products. And I know that I could sound kinda extremist but there are a bunch of animals that could be used for this example in a better way without violating cultural dogmas. At the end it was a nice video and I enjoyed it.

[@carlofatx]

Same concept. :D

[@AM-ok5lf]

carlofatx With what? Were you looking for some math or you are just agree to use cows as a way to get money specially coming from an Indian source?

[@carlofatx]

The video is just a different interpretation of the derivative, but the explanation is exactly the same as with the derivative of f in Engineering.

[@AM-ok5lf]

carlofatx But the application is focused at the economical use. Not the engineering one.

[@muzicoflife]

Alejandro Montoya I appreciate your compassion for animals but on a silde note though the cows can be sold in market for the their milk it is common in India. Also there are some communities in Hindu tradition that eat cows. It is legal in some states of India to slaughter the cows which are consumed by other religious groups.

[@roshanghadigaonkar8267]

Awesome , awesome and awesome video....

[@tnt73762]

my favorite part is that the currency is rupees. 10/10 would zelda again

[@CrashingOut27]

Rupees are a real world currency in India. Just in case you weren't joking

[@bigpunk9143]

Loved it! Been going crazy over derivatives and this just made it so easy to understand Futures Contract 💖 I wish I could learn all the types of derivates this way.

[@mynameisnssnssn]

Video is good. It explains only on future contracts, which is a kind of derivatives. Here the investor derives money from the underlying asset(here it is the cow). Derivatives, equities (i.e. stocks) and debt (i.e. bonds and mortgages) are the financial instruments. Financial instruments are legal documents that embody monetary value.

[@Rav4Star]

You should make more videos regarding finance, you made so much sense!

[@JackIsNotInTheBox]

THIS CHANNEL DESERVES MORE VIEWS!!!

[@ramboislviat5746]

Nice video Graphitishow, thank you for sharing your knowledge with us. It's a nice video at all.

[@anshumansingh2909]

Best very easy method .......thanks

[@danish5087]

A very informative and simple video, but its more about futures contracts and not derivatives.

[@thedinosaurstory]

For all the research that I have made, this is the only video that I've understood xDD

[@gagnant4]

I did come here for math, but since I was already here I thought why not find out what a financial derivative is.....I am none the wiser.

[@ihavemyid]

Realy Helpful Vdo Bro !!! I was very much confused abt this.. but u made it simple to understand..THanks :)

[@faeancestor]

Thanks to this video, I am now prepared for calculus.

[@hardhatpicasso]

its got nothing to do with derivatives

[@vasudevpranadas]

Futures & Options are the most common derivatives.. this video covered futures on one type of asset (cow).. but there are hundreds of variations of this and it's all created in the evil minds of bankers to quickly make money

[@commodore7838]

whats evil about this?

[@ciencias3344]

So if Mad Cow disease happens, you can still sell cows? But at a lower price? I assume you test the other cows and sell what you can? If you have a crop and it is taken by a disease can you still sell the rest at a lower price? This would also increase the price of everyone else's cows since the supply suffered a loss. Should it not increase the price of tested cows? but maybe not because of fear. Pls respond. I have a project and this confused me a bit

[@joemctaggart3920]

hardhatpicasso they are in a nutshell a bet on an item reaching a set price thats it its a gamble in effect

[@akgj1996]

It does

[@prajaktaamit6970]

very nice explaination , it is for a lay man who dont know the concept of terminology of banking

[@laurenpraiz]

Concise. I love this video 😍

[@mnm121314]

this was explained perfectly. great video!

[@wurth987456]

to you and me it's usually when you tell your bank to sell your market shares in the future for an agreed upon price regardless of their future value. So in effect you're betting that your shares with lose value in the future and the bank is hoping they gain value.

[@baxter987]

Ty for telling me what future contracts are. What are derivatives?

[@brianmerion]

Shit I have calc in 15 minutes and I still don't know what a derivative is

[@SoniaYunni]

Thanks for this video and now i understand what do derivatives truly means. :D

[@jylee4288]

I believe it should be titled what is future contract ?"

[@vasudevpranadas]

Futures & Options are the most common derivatives.. this video covered futures on one type of asset (cow).. but there are hundreds of variations of this and it's all created in the evil minds of bankers to quickly make money

[@bunnyashish9305]

It more likely to be forward contract bro.

[@dary1404]

Very valuable video! I need more .Thank you very much.

[@baarla281]

Thanks to u alot, I really understood I was confused with the lecturers slides, but u really put more practical.

[@rushirajdhamale1333]

Please keep helping like this. Market more!!!!

[@pedroduarte8950]

Great Video. Kept it plain and simple. Tnx

[@riseekr.4137]

already frustrated with maths came for solutions searched for derivative and the first video pop up is yours... asking maths not business.

[@lakshayavarshney78]

Guys listen this video at 0.5 or low speed it will entertain u

[@vuufke4327]

People.. this is a video about financial derivatives (options/futures/cfd..) not math function derivatives

[@ncamisilengcongca]

You made my life so much easier! !!! Thanks

[@prashantgurung7249]

Thank you so much for beautiful explanation!!❤️😍🙏

[@Person-cv5mf]

@1:11 - He did not enter futures contract. He entered a forward contract. A forward contract is entered into where the two parties to the agreement know each other. A futures contract is and agreement that is traded anonymously.

[@simgikehifko3986]

Thank you so much It's very clear to understand

[@policemanaaron]

That might be how dodgy businessmen work in the Philippines, but you'd soon be imprisoned if you tried that in a Western country. OverlordSolvent makes a good point when he says the price would go up (due to reduced supply), but, in the case of an outbreak of Mad Cow disease, I suspect the reduced consumer demand for beef would counter its effect on the price. The equilibrium price may go up OR down.

[@alexkmile]

this is the best explanation ever!

[@normina457]

Thanks for this ... great job.You could make more of such animations for other finance topics as well.

[@roaamubarak1044]

So it's true, Indians always explain it better.

[@mgkkkkk123]

thanks it is the best clarification I could ever watch..

[@priyankabhatt1678]

Superb explanation..loved ur voice

[@PGIFilms]

Depending on the broker & investment tactics, it's either an execution of 2 separate contracts (search "Calls & Puts") or 2 separate market transactions & in both cases the amount the 1st investor pays is never revealed to other investors, because it is irrelevant. Only the current market price ($50/cow in the last example) matters & the broker can sell those cows for you (limiting your losses) because there are other investors trying to buy cows (to sell later) & willing to pay the $50 price.

[@harrycard5406]

Good vid. Not for Clac for those wondering..... it's relating to derivatives of stock.

[@mishahul]

thank you for this beautiful video. an example of simplicity. it is very difficult to have an animation type of video. i really appreciate this. Asif Riaz be positive man. Appreciate what others do for you for free. what have you done! If you are a Muslim, remember Allah is As Shakoor meaning appreciative of all the small good things you do. thanks graphitshow.

[@amalmurali705]

Good explanation of futures contract, expecting videos of options and swaps

[@lalang389]

He had me in the first half

[@francisluwe1635]

Most clear explanation 👌

[@gdogvibes1]

this Rapu guy didnt even make 10 dollars lol

[@Shivaprasad2634]

Cihan Barnett ..It's Ramu bro..

[@moeedshaikh1]

Powder hahaha

[@digbick657]

And you're a lonely little bitch who got touched by his dad.

[@baachibaachichinta4017]

@@Shivaprasad2634 Ya

[@jadepinto4321]

@@Shivaprasad2634 thank you

[@crash4dafun]

I wish there was a stop loss for the U.S. taxpayer...

[@jadepinto4321]

haha honestly

[@PavanKumar-qt9ru]

DERIVATIVES AND DEVENGERS THESE TWO ARE SAME SIR OR NOT SIR PLZ TELL ME SIR THANKYOU SIR YOUR UPLOADED THIS VIDEO VERY VERY USEFUL FOR ALLLLL SUBSCRIBES

[@carllategan846]

This was a very helpful video thanks

[@thellamasquads]

i just realized this isn't a math video

[@Deanstruction1]

Very simple! Thanks!

[@yashshekhar5009]

What you mentioned here is a Forwards Contract, not a Futures Contract. In a Futures Contract the buyer is not obligated to buy an asset in the future but he has the choice to exercise his decision to buy since he was the one who paid money upfront as premium. The seller is obligated to sell it if the buyer wishes to buy. In a Forwards Contract it is rigid both to the buyer as well as the seller.

[@RaghavaIndra]

Hilarious comments haha can't stop laughing. Thank you guys, I had almost forgot about that mathematical derivative topic. Ah nostalgia!

[@dhirajyadav7723]

Excellent video !!!!

[@BestMentalism]

thank you for this clear explanation with such a funny accent

[@passportandpizza]

very nicely explained

[@ProperCBM]

And that, my friends, is what gave way to the recession.

[@shashsrivas]

This is about finanincial term, not to be confused with mathematics

[@mahbubalislam2475]

U guys rock. ..... . loved the video

[@SanteeRocks]

Awesome explanation !

[@thanabatisaradamrongkul665]

Surprisingly, I finished the video.

[@13random]

Excellent video

[@aman2426]

So the futures contract says that I will buy from you at a fixed date and price in the future. And a Future's contract is a type of derivative, because the price of that contract(Financial Security) will depend on the price of cows(Asset on which security is based) in the market. I got this right?

[@priyankagarg3321]

But what is conclusion,what are derivatives?

[@ManishaKaur5]

The Contract which Ramu & the Broker made

[@jmotg]

This is so incredibly helpful! thank you so much

[@benjamingoulet8059]

Derivatives market includes assets (debt) in excess of $4,000,000,000,000,000.00 worth in loans, bets, futures, and options (amongst the wealthy who play with investors i.e.; stockholder's money... Stock market investors.. 401k, social security, etc... So... Do I pay or you? Who pays these guys that bring no real value to the table? This video has no merit on the books I've read on the subject nor the research I've done. A great introduction to say the least. Here is your question... What would happen if the financial derivatives market crashed?

[@rangerlone9594]

nicely explained... thnx

[@alexm4757]

So you buy something with the intention of the seller keeping it in possession till a future date & basically being responsible for it. What’s the difference of buying those cows right away when the contract is signed and selling it on the “future date”???????????? If you believe those cows are going to sell for 200 why not keep buy them upfront rather than a future date???? Someone please explain in reference to the situation for better clarity

[@indianpride8545]

This video pissed off many math nerds.

[@Rambroo92]

How do we set a stop loss price without a fixed market price anyway? (In the case of cows)

[@veabangonon7901]

great help for accountancy students like me 😊

[@muhammadashraf2863]

Hey brother, thank for the explanation. MashaAllah, it makes so much sense now. :)

[@sajsanilkumar8733]

This video was very helpful, thanks graphitishow!

[@Gar96229]

From what I understand, basically it means. I'll sell you this thing to you in a years time, you'd better hope what I sell doesn't turn to crap?

[@MrBrotmafia]

+David Ryan ^Yes. Or on the other hand I'll buy this thing in a years time, I hope it increases in value by a lot. You don't have to buy the actual underlying (e.g. a cow), just pay for the difference in value.

[@trentvannice4740]

he explained what futures are, but there are more derivatives.

[@taigi100]

Though it was about the mathematical term but oh well... Just wondering what happens if your asset gets damaged or destroied in the timeframe from when you made the contract till when the buy/sell part happens.

[@shubhamgoyal9075]

Thanks ,very very helpful it's is

[@ElectricityTaster]

So what are the derivatives, the future or the stop loss? both?

[@Nanofuture87]

The future.

[@pauljones9661]

so what happens when you cannot find a buyer at your stop loss level? or is one found when you set up a stop loss before the event? Seems to me like a crazy way to invest, and the easy explanation as to how this current fiat economy will collapse entirely in the next weeks and months

[@prajaktabansode9008]

Thanks for uploding this video ☺️

[@KUCaldog187]

GREAT VIDEO! THANK YOU

[@gunthalaharindra1311]

I have a doubt.. when did product ( cow ) is to be delivered either in 2012 or in 2013

[@TehKhronicler]

Concise, easy to understand, wonderful. Great style of video.

[@anmolthakur2637]

awesome video