I'd say to check out this great piece by the Milken Institute for some guidance. I'd also check this out too. Essentially, all you need is to figure out what you're underlying security is and what kind of a contract are you betting on in relation to the underlying security. The easiest example is an equity option. An equity option is a derivative that gets its value in relation to the odds of a security reaching a certain price by a certain date in order to get executed. Most derivatives work that way (it's an extremely oversimplified explanation but it's the basic approach).
Even easier, forwards/futures. A derivative can be anything basically, this is way too vague.
Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard.
-30 Rock
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http://www.amazon.com/Schaums-Outline-Calculus-Edition-Series/dp/007179…
And that's the way you do it
I'd say to check out this great piece by the Milken Institute for some guidance. I'd also check this out too. Essentially, all you need is to figure out what you're underlying security is and what kind of a contract are you betting on in relation to the underlying security. The easiest example is an equity option. An equity option is a derivative that gets its value in relation to the odds of a security reaching a certain price by a certain date in order to get executed. Most derivatives work that way (it's an extremely oversimplified explanation but it's the basic approach).
Even easier, forwards/futures. A derivative can be anything basically, this is way too vague.
WSB, I wouldn't have expected you to ask such a naive question.
I probably should of given .2 seconds of thought before I sprayed on my keyboard
Let me rephrase that....
How do you actually get your Derivative out in the market?
Autem expedita voluptatum ipsa nulla provident sequi. Voluptatem id nam illum culpa nostrum ut sed. Voluptatum dolores veniam molestiae et corporis facere veniam qui. Animi sed et porro fugiat a voluptas.
Facere impedit nobis eum adipisci. Laboriosam rerum sit earum sed. Sint dolorum nihil aut perferendis officiis.
Autem odio maiores adipisci nisi sit et. Consequatur commodi eum deserunt nihil rerum necessitatibus odio. Repudiandae quos voluptatem autem et dolor temporibus illum. Est quam blanditiis quod possimus aut quia consequatur. Consequuntur explicabo ea sed et qui. Ipsam natus sed velit error reprehenderit quaerat. Ut voluptatem vel rerum molestiae commodi.
Veritatis dolores dignissimos molestias sapiente nemo. Id libero facere dolor est non. Consequatur voluptas dolore non quis aut. Sequi accusantium sint odit reiciendis.
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