Tag Archives: derivatives

FX Derivatives

Derivatives are instruments and typically used by investors for speculation and arbitrage or hedging against possible future changes.  Generally, they took a form of contract under which parties agreed on payments, dates, amounts, obligations between the parties.

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The most commonly used foreign exchange derivatives are forward contracts, future contracts, options and swaps. I will make a brief introduction for each derivative with example below.
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Power Rule, Product Rule, Quotient Rule and Chain Rule

Recently, I had a need to use derivative. So I decided to make this short overview of the four fundamental rules to refresh and recall my knowledge in evaluating derivatives.

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The overview doesn’t contain any proves, it’s just a reference where you and I can quickly find differentiation rules that can be applied on derivatives. Moreover, I skipped some other rules such as sum or difference rule.

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