Understanding Derivatives: Options, Futures, Forwards & Swaps 📊 | A Beginner's Guide for Aspiring Quants

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𝘿𝙀𝙍𝙄𝙑𝘼𝙏𝙄𝙑𝙀𝙎 are financial assets that give you specialized control over your investments. They can be used to reduce risk (hedging) or greatly increase risk (leverage). Today we introduce Options, Futures, Forwards, and Swaps.

𝙅𝙪𝙢𝙥 𝙩𝙤 𝙙𝙞𝙛𝙛𝙚𝙧𝙚𝙣𝙩 𝙩𝙤𝙥𝙞𝙘𝙨:
0:00 Intro to Derivatives
0:14 Options & Strike Price
0:49 Call vs Put Options
1:55 Example: Put option for wheat harvest
2:31 Futures & Future Price
2:54 Example: Futures contract on wheat
3:18 S&P 500 and E-mini futures
4:08 Mark to market accounting (MTM)
4:30 Socratica Quant Course
4:44 Over the counter market (OTC)
5:08 Forward contracts
5:18 The swap
5:29 Example: interest rate swap
5:48 vocab: SOFR & Basis points

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