The smart Trick of Aftershave That Nobody is Discussing

Shaving is a grooming ritual that has transcended generations and cultures, evolving from the rudimentary tools of yesteryears to the sophisticated razors of today. Amidst the sea of options available in the modern shaving landscape, the double edge safety razor stands as a timeless and iconic choice, embodying a blend of tradition, craftsmanship, and practicality. In this discourse, we delve into the intricate world of double edge safety razors, exploring their history, mechanics, benefits, and enduring allure.

History and Evolution

The journey of the double edge safety razor dates back to the late 19th century, an era characterized by a quest for innovation in personal grooming. Prior to its inception, shaving tools were often cumbersome and fraught with peril, leading to frequent nicks, cuts, and skin irritation. It was King C. Gillette who revolutionized the shaving landscape with his patent for a safety razor in 1904, introducing the concept of disposable blades that could be inserted into a reusable handle. This innovation not only simplified shaving but also made it safer and more accessible.

The original double edge safety razor featured a single blade with two sharp edges, hence the name "double edge." The design allowed users to switch between the two edges as one side dulled, offering a longer-lasting shaving experience. Over time, the design evolved, incorporating adjustable settings for blade exposure and angle, catering to individual preferences and facial hair types. Manufacturers like Merkur, Edwin Jagger, and Parker have continued to refine the design, merging modern precision engineering with classic aesthetics.

Mechanics and Design

The double edge safety razor is characterized by its elegant simplicity. The razor typically consists of three main components: the handle, the head, and the blade. The handle is often made from various materials such as stainless steel, brass, or even exotic woods, contributing to the razor's weight and balance. The head holds the blade securely and maintains the correct shaving angle, preventing excessive pressure and reducing the risk of irritation.

One of the defining features of double edge safety razors is the use of a single, double-edged razor blade. Unlike multi-blade cartridges that have become ubiquitous in modern shaving, the single blade provides a closer and cleaner shave while minimizing the potential for ingrown hairs and irritation. This is particularly beneficial for individuals with sensitive skin prone to razor burn.

Benefits and Appeal

The resurgence of interest in double edge safety razors in recent years is a testament to their enduring appeal. Here are some of the key benefits that have contributed to their popularity:

Economical: Double edge safety razors offer a cost-effective alternative to multi-blade cartridges. While the initial investment in a quality razor might be higher, the long-term savings from using inexpensive razor blades quickly accumulate.

Sustainable: In a world increasingly conscious of environmental impact, the disposable nature of multi-blade cartridges has raised concerns. Double edge safety razors produce significantly less waste as only the thin, recyclable razor blades need replacing.

Quality of Shave: The single blade design of double edge safety razors allows for a closer and more precise shave. This results in reduced irritation and ingrown hairs, making it an ideal choice for those with sensitive skin.

Traditional Experience: Shaving with a double edge safety razor evokes a sense of tradition and craftsmanship. The weight and balance of the razor, along with the need for proper technique, provide a tactile and engaging experience.

Customization: Many double edge safety razors feature adjustable settings, allowing users to tailor the blade exposure and angle to their specific needs. This flexibility is especially useful for individuals with varying facial hair textures.

Connection to History: Using a double edge safety razor connects users to a bygone era of grooming. It's an homage to a time when shaving was a deliberate and methodical act, rather than a hurried daily routine.

Aesthetics: The intricate designs, premium materials, and polished finishes of double edge safety razors make them aesthetically pleasing objects. Displayed on a bathroom counter, they exude an air of refinement.

Shaving Technique and Learning Curve

While the benefits of double edge safety razors are clear, it's important to acknowledge that they require a degree of skill and technique. Shaving with these razors demands a gentle touch, proper angle, and slower, deliberate strokes. The learning curve can be intimidating for those accustomed to the ease of multi-blade cartridges. However, the investment in time and practice is rewarded with an unparalleled shaving experience.

Conclusion

The double edge safety razor, with its rich history, elegant design, and myriad benefits, stands as a steadfast choice in the ever-evolving landscape of shaving tools. Beyond its practical utility, it embodies a philosophy Razor Blades of craftsmanship, sustainability, and connection to the past. As the world continues to place value on authenticity and quality, the timeless appeal of the double edge safety razor is destined to endure, serving as a reminder that sometimes, the old ways are indeed the best ways.

The smart Trick of Coil building kits online That Nobody is Discussing

Vaping has become increasingly popular over the years as an alternative to traditional smoking. One of the key components of a satisfying vaping experience is choosing the right e-liquid. With a wide array of flavors and nicotine strengths available on the market, selecting the best e-liquid can be overwhelming. This guide aims to help you navigate through the options and find the perfect e-liquid that suits your preferences. From understanding the ingredients to exploring flavor profiles and nicotine levels, we will cover everything you need to know to make an informed choice.

Understanding the Basics of E-Liquid:

E-liquid, also known as vape juice, is the fluid that is vaporized in an electronic cigarette or vaporizer device. It typically consists of four primary ingredients: propylene glycol (PG), vegetable glycerin (VG), flavorings, and nicotine (optional). PG provides a stronger throat hit and carries flavors better, while VG contributes to denser vapor production. It is crucial to understand these components to determine the type of e-liquid that best suits your vaping preferences.

Choosing the Right PG/VG Ratio:

The PG/VG ratio plays a significant role in your vaping experience. A higher PG ratio (e.g., 70/30 PG/VG) is suitable for those who prefer a stronger throat hit and a more pronounced flavor. On the other hand, a higher VG ratio (e.g., 70/30 VG/PG) is ideal for vapers who prioritize thick vapor production and smoother inhales. Experimenting with different ratios will help you find the balance that provides the desired throat hit, vapor production, and flavor intensity.

Exploring Flavor Profiles:

One of the most exciting aspects of vaping is the wide variety of flavors available. Whether you prefer fruit, dessert, tobacco, or menthol flavors, there is an e-liquid to satisfy your taste buds. When selecting flavors, consider your personal preferences and try to choose high-quality e-liquids from reputable brands. Additionally, reading reviews and seeking recommendations from fellow vapers can help you discover hidden gems and avoid disappointing flavors.

Nicotine Strengths:

E-liquids come in various nicotine strengths, ranging from nicotine-free (0mg) to high levels such as 24mg or even higher. The nicotine strength you choose depends on your smoking history and personal preferences. Former heavy smokers might prefer higher disposable vape brands nicotine concentrations initially and gradually decrease over time. Light smokers or those who want to enjoy vaping without nicotine can opt for nicotine-free e-liquids. It is essential to find a balance that satisfies your cravings without causing nicotine overdose or unpleasant sensations.

Quality and Safety:

When it comes to e-liquids, prioritizing quality and safety is crucial. Look for reputable brands that adhere to industry standards and use high-quality ingredients. Consider e-liquids that have undergone third-party testing, as this ensures accurate labeling and verifies that the product is free from harmful contaminants. It is also advisable to check for childproof packaging and follow proper storage guidelines to maintain the e-liquid's freshness and potency.

Experimenting and Customization:

Vaping allows for a high level of customization, providing an opportunity to explore different flavors, brands, and e-liquid combinations. Many vapers enjoy experimenting with DIY e-liquid mixing, creating unique blends to suit their specific tastes. However, it is essential to exercise caution and follow proper guidelines and safety measures when mixing your e-liquids. Always research and understand the potential risks and ensure you have the necessary knowledge and equipment before attempting DIY mixing.

Additional Factors to Consider:

Apart from the primary aspects discussed above, there are a few other factors to consider when choosing the best e-liquid for your vaping experience. These include the bottle size and packaging, price range, availability, and customer support from the brand. Evaluating these factors will help ensure a satisfying vaping experience and a smooth purchasing process.

Conclusion:

Selecting the best e-liquid for your vaping needs is a personal journey that involves experimentation, preference, and understanding your own vaping habits. By considering factors such as PG/VG ratio, flavor profiles, nicotine strengths, quality and safety, and customization options, you can narrow down your choices and find an e-liquid that delivers an enjoyable and tailored vaping experience. Remember to prioritize quality, explore different brands and flavors, and consult with fellow vapers to enhance your journey in the world of vaping.

The Fact About Researching Creative Industries In London That No One Is Suggesting

The creative industry thrives on innovation, originality, and the constant pursuit of new ideas. Research and development (R&D) play a vital role in this sector by fueling creativity, expanding boundaries, and driving growth. In this guide, we will explore the key principles, methodologies, and strategies involved in creative industry research and development. Whether you're an aspiring artist, a creative entrepreneur, or a professional in the field, this guide will provide you with valuable insights to help you navigate the exciting world of creative R&D.

Understanding the Creative Industry Landscape:
Defining the Creative Industry:
Explore the various sectors encompassed within the creative industry, such as visual arts, performing arts, design, fashion, advertising, film, music, and more.

Current Trends and Challenges:
Gain an understanding of the latest trends shaping the creative industry, including technological advancements, changing consumer preferences, sustainability, and globalization. Identify the challenges faced by the industry and how R&D can address them.

Importance of Research and Development in the Creative Industry:
Driving Innovation:
Discover how R&D stimulates innovation by encouraging experimentation, pushing boundaries, and challenging conventional thinking.

Enhancing Competitiveness:
Learn how creative R&D can give businesses a competitive edge by creating unique products, services, or experiences that resonate with consumers.

Supporting Creative Talent:
Explore how R&D initiatives can nurture and support emerging artists and creators, providing them with opportunities for growth, mentorship, and collaboration.
Key Elements of Creative Industry Research and Development:

Idea Generation:
Discover techniques for generating new ideas, such as brainstorming sessions, mind mapping, trend analysis, and exploring interdisciplinary collaborations.

Concept Development:
Learn how to refine and develop ideas into viable concepts through research, prototyping, user testing, and feedback loops.

Intellectual Property:
Understand the importance of protecting intellectual property in the creative industry and explore strategies for safeguarding your creations, including patents, trademarks, copyrights, and licensing agreements.

Funding and Resources:
Explore different funding options available for creative R&D projects, including grants, sponsorships, crowdfunding, and public-private partnerships. Additionally, learn how to leverage available resources such as research institutions, industry associations, and technology incubators.
Methodologies and Approaches for Creative R&D:

Qualitative Research:
Explore methods like interviews, focus groups, and ethnographic research to gain deep insights into consumer preferences, needs, and behaviors.

Quantitative Research:
Understand how surveys, data analytics, and market research can provide statistical data and trends to inform decision-making and validate creative concepts.

Collaborative Approaches:
Discover the benefits of collaborative R&D models, such as open innovation, co-creation, and partnerships with academia, industry experts, and other creative professionals.

Experimentation and Iteration:
Embrace an iterative approach to R&D, emphasizing rapid prototyping, user feedback, and continuous improvement to refine creative ideas and solutions.

Managing Creative Industry R&D Projects:

Planning and Execution:
Learn how to develop a comprehensive R&D project plan, including setting clear goals, defining timelines, allocating resources, and establishing key performance indicators (KPIs).

Team Building and Collaboration:
Explore strategies for assembling a multidisciplinary team with diverse skills and expertise, fostering a collaborative environment, and promoting effective communication.

Risk Management:
Understand the potential risks associated with creative R&D projects and develop strategies to mitigate them, including contingency planning, intellectual property protection, and compliance with legal and ethical standards.

Measuring Success: Identify appropriate metrics and evaluation methods to assess the impact and success of creative R&D initiatives, including artistic quality, market impact, revenue generation, customer satisfaction, and brand recognition.

Ethical Considerations in Creative Industry R&D:

Cultural Sensitivity:
Understand the importance of cultural sensitivity and respect when conducting R&D in diverse communities, and learn how to avoid appropriation or misrepresentation of cultural elements.

Sustainability and Environmental Impact:
Explore sustainable practices and eco-friendly approaches in creative R&D to minimize the industry's environmental footprint and promote responsible consumption.

Ethical Use of Data:
Ensure ethical handling and protection of user data collected during research activities, adhering to privacy laws and regulations.

Social Impact:
Consider the potential social impact of creative R&D projects and explore ways to create positive change, address societal issues, and promote inclusivity and diversity.
VII. Case Studies and Success Stories:

Innovative Products and Services:
Explore case studies highlighting successful creative R&D initiatives that have resulted in groundbreaking products or services, such as disruptive technologies, immersive experiences, or innovative business models.

Collaborative Projects:
Learn from examples of successful collaborations between artists, designers, researchers, and industry partners, showcasing the power of interdisciplinary cooperation in driving creative R&D.

Socially Impactful Projects:
Discover inspiring examples of creative R&D projects that have made a Research Creative and Cultural Industries significant difference in addressing social and environmental challenges, fostering positive change, and improving communities.

Conclusion:
Creative industry research and development is a dynamic and essential process that drives innovation, fuels creativity, and shapes the future of the industry. By understanding the unique landscape of the creative industry, embracing key principles and methodologies, and managing R&D projects effectively, individuals and organizations can unlock new possibilities and stay ahead in this ever-evolving field. Remember, the journey of creative R&D is as important as the destination, so embrace experimentation, collaboration, and continuous improvement to unleash your creative potential and make a lasting impact in the creative industry.

An Unbiased View of derivative product comics





A financial market refers to a marketplace where various kinds of financial securities such as stocks, bonds, commodities, etc. are traded. The term ‘market’ can also refer to exchanges that are legal organizations that facilitate the trade of financial securities between buyers and sellers. In any case, these markets are categorized based of the type of financial securities that are traded through them. One such financial market is the Derivatives Market.

Derivatives market thus refers to the financial marketplace where derivative instruments such as futures, forwards and options contracts are traded between counterparties.

It was during the 1980s and 1990s that the financial markets saw a major growth in the trade of derivatives. A derivative is a financial instrument whose value is derived from the value of an underlying asset such as stocks, bonds, currencies, commodities, interest rates and/or different market indices. These underlying assets have fluctuating prices and returns, and derivatives provides a means to investors to reduce the risk exposure and leverage profits on these assets. Thus, derivatives are an essential class of financial instruments and central to the modern financial markets providing not just economic benefits but also resilience against risks. The most common derivatives include futures, forwards, options and swap contracts.

As per the European Securities and Markets Authority (ESMA), derivatives market has grown impressively (around 24 percent per year in the last decade) into a truly global market with over €680 trillion of notional amount outstanding. The interest rate derivatives (IRDs) accounted for 82% of the total notional amount outstanding followed by currency derivatives at 11%.

Main types of derivative contracts
Derivatives derive their value from an underlying asset, or simply an ‘underlying’. There is a wide range of financial instruments that can be an underlying for a derivative such as equities or equity index, fixed-income instruments, foreign currencies, commodities, and even other securities. And thus, depending on the underlying, derivative contracts can derive their values from corresponding equity prices, interest rates, foreign exchange rates, prices of commodities and probable credit events. The most common types of derivative contracts are elucidated below:

Forwards and Futures
Forward and futures contracts share a similar feature: they are an agreement between two parties to buy or sell a specified quantity of an underlying asset at a specified price (or ‘exercise price’) on a predetermined date in the future (or ‘expiration date’). While forwards are customized contracts i.e., they can be tailor-made according to the asset being traded, expiry date and price, and traded Over-the-Counter (OTC), futures are standardized contracts traded on centralized exchanges. The party that buys the underlying is said to be taking a long position while the party that sells the asset takes a short position and both parties are obligated to fulfil their part of the contract.

Options
An option contract is a financial derivative that gives its holder the right (but not the obligation) to trade an underlying asset at a price set in advance irrespective of the market price at maturity. When an option is bought, its holder pays a fixed amount to the option writer as cost for this flexibility of trading that the option provides, known as the premium. Options can be of the types: call (right to buy) or put (right to sell).

Swaps
Swaps are agreements between two counterparties to exchange a series of cash payments for a stated period of time. The periodic payments charged can be based on fixed or floating interest rates, depending on contract terms decided by the counterparties. The calculation of these payments is based on an agreed-upon amount, called the notional principal amount (or just notional).

Exchange-traded vs Over-the-counter Derivatives Market
Exchange-traded derivatives markets
Exchange-traded derivatives markets are standardized markets for derivatives trading and follows rules set by the exchange. For instance, the exchange sets the expiry date of the derivatives, the lot-size, underlying securities on which derivatives can be created, settlement process etc. The exchange also performs the clearing and settlement of trades and provide credit guarantee by acting as a counterparty for every trade of derivatives. Thus, exchanges provide a transparent and systematic course of action for any derivatives trade.

Over-the-counter markets
Over-the-counter (also known as “OTC”) derivatives markets on the other hand, provide a lesser degree of regulations. They were almost entirely unregulated before the financial crisis of 2007-2008 (also a time when derivatives markets were criticized, and the blame was placed on Credit Default Swaps). OTCs are customized markets and run by dealers who hedge risks by indulging in derivatives trading.

Types of market participants
The participants in the derivative markets can be categorized into different groups namely,

Hedgers
Hedging is a risk-neutralizing strategy when an investor seeks to protect a current or anticipated position in the market by limiting their risk exposure. They can do so by taking up an offset or counter position through derivative contracts. Parties such as individuals or companies who perform hedging are called Hedgers. The hedger thus aims to eliminate volatility against fluctuating prices of underlying securities and protect herself/himself from any downsides.

Speculators
Speculation is a very common technique used by traders and investors in the derivatives market. It is based on when traders have a strong viewpoint regarding the market behavior of any underlying security and though it is risky, if the viewpoint is correct, the speculation may reward with attractive payoffs. Thus, speculators use derivative contracts with a view to make profit from the subsequent price movements. They do not have any risk to hedge, in fact, they operate at a relatively high-risk level in anticipation of profits and provide liquidity in the market.

Arbitrageurs
Arbitrage is a strategy in which the participant (or arbitrageur) aims to make profits from the price differences which arise in the investments made in the financial markets as a result of mispricing. Arbitrageurs aim to earn low risk profits by taking two different positions in the same or different contracts (across different time periods) or on different exchanges to in-cash on price discrepancies or market inefficiencies.

Margin Traders
Margin is essentially the collateral amount deposited by an investor investing in a financial instrument to the counterparty in order to cover for the credit risk associated with the investment. In margin trading, the trader or investor is not required to pay the total value of your position upfront. Instead, they only need pay the margin amount which may vary and are usually fixed by the stock exchanges considering factors like volatility. Thus, margin traders buy and sell securities over a single session and square off their position on the same day, making a quick payoff if their speculations are right.

Criticism of derivatives
While derivatives provide numerous benefits and have significantly impacted modern finance and markets, they pose many risks too. In a 2002 letter to Berkshire Hathaway shareholders, Warren Buffet even described derivatives as “financial weapons of mass destruction”.

Derivatives are more highly leveraged due to relatively relaxed regulations surrounding them, and where one may need to put up half the money or more with buying other securities, derivatives traders can get by with just putting up a few percentage points of the total value of a derivatives contract as a margin. If the price of the underlying asset keeps falling, covering the margin account can lead to enormous losses. Derivatives are thus often criticized as they may allow investors to obtain unsustainable positions that elevates systematic risk so much that it can be equated to legalized gambling. Derivatives are also exposed to counterparty credit risk wherein there is scope of default on the contract by any of the parties involved in the contract. The risk becomes even greater while trading on OTC markets which are less regulated.

Derivatives have been associated with a number of high-profile credit events over the past two decades. For instance, in the early 1990s, Procter and Gamble Corporation lost more than $100 million in transactions in equity swaps. In 1995, Barings collapsed when one of its traders lost $1.4 billion (more than twice its then capital) in trading equity index derivatives.

The amounts involved with derivatives-related corporate financial distresses in the 2000s increased even more. Two such events were the bankruptcy of Enron Corporation in 2001 and the near collapse of AIG in 2008. The point of commonality among these events was the role of OTC derivative trades. Being an AAA-rated company, AIG was being exempted from posting collateral on most of its derivatives trading in 2008. In addition, AIG was unique among CDS market participants and acted almost exclusively as credit protection seller. When Produits dérivés série the global financial crisis reached its peak in late 2008, AIG’s CDS portfolios recorded substantial mark-to-market losses. Consequently, the company was asked to post $40 billion worth of collateral and the US government had to introduce a $150 billion financial package to prevent AIG, once the world’s largest insurer by market value, from filing for bankruptcy.

Conclusion
Derivatives were essentially created in response to some fundamental changes in the global financial system. If correctly handled, they help improve the resilience of the system, hedge market risks and bring economic benefits to the users. Thus, they are expected to grow further with financial globalization. However, past credit events have exposed many weaknesses in the organization of their trading. The aim is to minimize the risks associated with such trades while enjoying the benefits they bring to the financial system. An important challenge is to design new rules and regulations to mitigate the risks and to promote transparency by improving the quality and quantity of statistics on derivatives markets.

How Much You Need To Expect You'll Pay For A Good Produits dérivés manga





A financial market refers to a marketplace where various kinds of financial securities such as stocks, bonds, commodities, etc. are traded. The term ‘market’ can also refer to exchanges that are legal organizations that facilitate the trade of financial securities between buyers and sellers. In any case, these markets are categorized based of the type of financial securities that are traded through them. One such financial market is the Derivatives Market.

Derivatives market thus refers to the financial marketplace where derivative instruments such as futures, forwards and options contracts are traded between counterparties.

It was during the 1980s and 1990s that the financial markets saw a major growth in the trade of derivatives. A derivative is a financial instrument whose value is derived from the value of an underlying asset such as stocks, bonds, currencies, commodities, interest rates and/or different market indices. These underlying assets have fluctuating prices and returns, and derivatives provides a means to investors to reduce the risk exposure and leverage profits on these assets. Thus, derivatives are an essential class of financial instruments and central to the modern financial markets providing not just economic benefits but also resilience against risks. The most common derivatives include futures, forwards, options and swap contracts.

As per the European Securities and Markets Authority (ESMA), derivatives market has grown impressively (around 24 percent per year in the last decade) into a truly global market with over €680 trillion of notional amount outstanding. The interest rate derivatives (IRDs) accounted for 82% of the total notional amount outstanding followed by currency derivatives at 11%.

Main types of derivative contracts
Derivatives derive their value from an underlying asset, or simply an ‘underlying’. There is a wide range of financial instruments that can be an underlying for a derivative such as equities or equity index, fixed-income instruments, foreign currencies, commodities, and even other securities. And thus, depending on the underlying, derivative contracts can derive their values from corresponding equity prices, interest rates, foreign exchange rates, prices of commodities and probable credit events. The most common types of derivative contracts are elucidated below:

Forwards and Futures
Forward and futures contracts share a similar feature: they are an agreement between two parties to buy or sell a specified quantity of an underlying asset at a specified price (or ‘exercise price’) on a predetermined date in the future (or ‘expiration date’). While forwards are customized contracts i.e., they can be tailor-made according to the asset being traded, expiry date and price, and traded Over-the-Counter (OTC), futures are standardized contracts traded on centralized exchanges. The party that buys the underlying is said to be taking a long position while the party that sells the asset takes a short position and both parties are obligated to fulfil their part of the contract.

Options
An option contract is a financial derivative that gives its holder the right (but not the obligation) to trade an underlying asset at a price set in advance irrespective of the market price at maturity. When an option is bought, its holder pays a fixed amount to the option writer as cost for this flexibility of trading that the option provides, known as the premium. Options can be of the types: call (right to buy) or put (right to sell).

Swaps
Swaps are agreements between two counterparties to exchange a series of cash payments for a stated period of time. The periodic payments charged can be based on fixed or floating interest rates, depending on contract terms decided by the counterparties. The calculation of these payments is based on an agreed-upon amount, called the notional principal amount (or just notional).

Exchange-traded vs Over-the-counter Derivatives Market
Exchange-traded derivatives markets
Exchange-traded derivatives markets are standardized markets for derivatives trading and follows rules set by the exchange. For instance, the exchange sets the expiry date of the derivatives, the lot-size, underlying securities on which derivatives can be created, settlement process etc. The exchange also performs the clearing and settlement of trades and provide credit guarantee by acting as a counterparty for every trade of derivatives. Thus, exchanges provide a transparent and systematic course of action for any derivatives trade.

Over-the-counter markets
Over-the-counter (also known as “OTC”) derivatives markets on the other hand, provide a lesser degree of regulations. They were almost entirely unregulated before the financial crisis of 2007-2008 (also a time when derivatives markets were criticized, and the blame was placed on Credit Default Swaps). OTCs are customized markets and run by dealers who hedge risks by indulging in derivatives trading.

Types of market participants
The participants in the derivative markets can be categorized into different groups namely,

Hedgers
Hedging is a risk-neutralizing strategy when an investor seeks to protect a current or anticipated position in the market by limiting their risk exposure. They can do so by taking up an offset or counter position through derivative contracts. Parties such as individuals or companies who perform hedging are called Hedgers. The hedger thus aims to eliminate volatility against fluctuating prices of underlying securities and protect herself/himself from any downsides.

Speculators
Speculation is a very common technique used by traders and investors in the derivatives market. It is based on when traders have a strong viewpoint regarding the market behavior of any underlying security and though it is risky, if the viewpoint is correct, the speculation may reward with attractive payoffs. Thus, speculators use derivative contracts with a view to make profit from the subsequent price movements. They do not have any risk to hedge, in fact, they operate at a relatively high-risk level in anticipation of profits and provide liquidity in the market.

Arbitrageurs
Arbitrage is a strategy in which the participant (or arbitrageur) aims to make profits from the price differences which arise in the investments made in the financial markets as a result of mispricing. Arbitrageurs aim to earn low risk profits by taking two different positions in the same or different contracts (across different time periods) or on different exchanges to in-cash on price discrepancies or market inefficiencies.

Margin Traders
Margin is essentially the collateral amount deposited by an investor investing in a financial instrument to the counterparty in order to cover for the credit risk associated with the investment. In margin trading, the trader or investor is not required to pay the total value of your position upfront. Instead, they only need pay the margin amount which may vary and are usually fixed by the stock exchanges considering factors like volatility. Thus, margin traders buy and sell securities over a single session and square off their position on the same day, making a quick payoff if their speculations are right.

Criticism of derivatives
While derivatives provide numerous benefits and have significantly impacted modern finance and markets, they pose many risks too. In a 2002 letter to Berkshire Hathaway shareholders, Warren Buffet even described derivatives as “financial weapons of mass destruction”.

Derivatives are more highly leveraged due to relatively relaxed regulations surrounding them, and where one may need to put up half the money or more with buying other securities, derivatives traders can get by with just putting up a few percentage points of the total value of a derivatives contract as a margin. If the price of the underlying asset keeps falling, covering the margin account can lead to enormous losses. Derivatives are thus often criticized as they may allow investors to obtain unsustainable positions that elevates systematic risk so much that it can be equated to legalized gambling. Derivatives are also exposed to counterparty credit risk wherein there is scope of default on the contract by any of the parties involved in the contract. The risk becomes even greater while trading on OTC markets which are less regulated.

Derivatives Produits dérivés comics have been associated with a number of high-profile credit events over the past two decades. For instance, in the early 1990s, Procter and Gamble Corporation lost more than $100 million in transactions in equity swaps. In 1995, Barings collapsed when one of its traders lost $1.4 billion (more than twice its then capital) in trading equity index derivatives.

The amounts involved with derivatives-related corporate financial distresses in the 2000s increased even more. Two such events were the bankruptcy of Enron Corporation in 2001 and the near collapse of AIG in 2008. The point of commonality among these events was the role of OTC derivative trades. Being an AAA-rated company, AIG was being exempted from posting collateral on most of its derivatives trading in 2008. In addition, AIG was unique among CDS market participants and acted almost exclusively as credit protection seller. When the global financial crisis reached its peak in late 2008, AIG’s CDS portfolios recorded substantial mark-to-market losses. Consequently, the company was asked to post $40 billion worth of collateral and the US government had to introduce a $150 billion financial package to prevent AIG, once the world’s largest insurer by market value, from filing for bankruptcy.

Conclusion
Derivatives were essentially created in response to some fundamental changes in the global financial system. If correctly handled, they help improve the resilience of the system, hedge market risks and bring economic benefits to the users. Thus, they are expected to grow further with financial globalization. However, past credit events have exposed many weaknesses in the organization of their trading. The aim is to minimize the risks associated with such trades while enjoying the benefits they bring to the financial system. An important challenge is to design new rules and regulations to mitigate the risks and to promote transparency by improving the quality and quantity of statistics on derivatives markets.

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