Derivatives | Marketplace Whiteboard
Credit default swaps? They're complicated and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common - they're both derivatives. Paddy Hirsch explains. #MarketplaceAPM #Whiteboard #EconomicExplainers
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Пікірлер: 524
The smartest people explain things in the simplest terms.
@remlatzargonix1329
4 жыл бұрын
John Childs ...yes, he is very good....I say this as someone with post graduate degrees in this stuff, and I really enjoyed his explanations!
@onenationunderduress8994
4 жыл бұрын
I wouldn’t say the ‘smartest people.’ I would say one who truly understands something can explain it in simple terms.
@TechieTard
4 жыл бұрын
ooOOOhhh, I get it!
@timothyphoenix4209
4 жыл бұрын
@@onenationunderduress8994 Or ones that are simply good at educating.
@johnboykin3128
4 жыл бұрын
Monetized contracts
You're arguably the only person on KZread who doesn't waste even a nanosecond to advertise his channel and gets right into the incredibly worthy content. I LOVE your videos! Thank you so very much ♥️
@DrRock2009
4 жыл бұрын
Antares 555 FYI: Dr Berg is the same....
@herp_derp
4 жыл бұрын
His videos are from the golden age of Youtubr. This stuff really wasn't common back then.
@van91nq
3 жыл бұрын
so true
@QOOQ-ew3uq
3 жыл бұрын
If you like this you'll like Kai Rysdall and the Marketplace team every weekday
@oussamachouichi5677
2 жыл бұрын
And sadly pays a price for that, once he made a presentation of his book at Google, asked the audience if they know the channel almost not a soul replied. Somehow, internet favors the fake and the pretentious over the straight-to-the-point people.
I was looking for calculus, but...I think I'll start a drug empire now; thanks!
@FireVortex720
9 жыл бұрын
lmao nice one
@kebman
5 жыл бұрын
I'm going for a Turkey empire myself. I'm going to RULE Thanks Giving!
@dariknour6051
5 жыл бұрын
MrOmniblast 😂😂😂
@davidc2837
4 жыл бұрын
lmfao
@henningokholm7912
4 жыл бұрын
Notice how 300 is mentioned and in the second example 20 "times" 15 is the same. How cool is that.
Great Down-to-Earth Examples nicely explained by someone who actually really looks like he wants to teach people. Best I came across! Keep it up and thanks a lot.
@toddlavigne6441
5 жыл бұрын
totally agree....this guy is a great teacher
@oneandone2744
4 жыл бұрын
So true! You know Ray Diallo (?) and Steve Ackman are pretty good too.
The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?
@mariahhayes5089
Жыл бұрын
For the average person, these techniques are rather demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
@raymondbarnes5264
Жыл бұрын
Working with a reputable investing coach is now the greatest market approach. Since a while ago, I've been in contact with a coach, mostly because I don't have the breadth of knowledge or mental fortitude to handle these recurrent market conditions. I made almost $700k during this downturn, demonstrating that the market is more complex than most people realize.
@helenoliver4838
Жыл бұрын
@@raymondbarnes5264 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
@raymondbarnes5264
Жыл бұрын
@@helenoliver4838 My consultant is 'MARTHA ALONSO HARA" I found her on a CNBC interview where she was featured and reached out to her afterwards. You can look her up online, i basically follow her trade pattern.
@helenoliver4838
Жыл бұрын
@@raymondbarnes5264 Found her webpage. I wrote her a message, hopefully she responds, I plan for this 2023 to be my year of financial success.
This is the best explanation I have ever come across. Well done
great explanation. So basically the counter party risk regarding derivatives are that underlying assets can be worth a lot less at a later date.
@nikon800
2 жыл бұрын
That's not counter party risk. If somehow when the time comes and the seller of the future/forward cannot deliver the product, that is counter party risk.
I have listened to about five different lecturers without understanding what derivative is but this is the one that has been explained smartly.
I am only 13 and I understood everything in your video! You are amazing at explaining economics!
+Marketplace APM What's great about your explanations is that you don't rely on jargon. Most other tutorials will reference concepts as if you already know what they are. This is great for newbies. Thanks for this!
I love it when he tosses the maker. beautifully well explained. #dropthemic.
Even 10 years later I learned more economics from watching a few of these videos than all of my years in high school.
I watched seven minutes before realizing this isn't about math derivatives...
@rickyreyes30
3 жыл бұрын
This is the same concept of a derivative. It's the change of the underlying asset over time.
@craigjoyner9857
3 жыл бұрын
No F’(x) here.
Love it! That's the best explanation I've heard about derivatives in ages. There was an old saying "no one born before 1970's understands what derivatives are..".
I’ve been in the financial services industry for almost a decade and I love how this man explains otherwise very complex instruments and concepts. I listen to it so that I can keep that concept in mind when explaining these concepts to clients. Great channel!
@Chrisinsocal
4 жыл бұрын
Luke Daly We’re everywhere! Lol
You have always been able to explain things succinctly and hold my interest. I've been enjoying this entire series.
Sir , you are a champion . The world needs teachers like you . Kudos to the videos !!
i was reeling badly and needing a drink trying to understand wall street until i stumbled upon this legend, thank you good sir!
@oneandone2744
4 жыл бұрын
I enjoyed the story about Bruce Kovner reading "The history of Interest Rates" to get started. He was driving a cab in the seventies, borrowed three thousand on his card to get started. His shock at making forty thousand in two days, and losing thirty thousand on fruit commodities the third day.
Excellent explanation! This is the first time I have seen this derivative problem explained in such detail. Thank you.
Thank you for making this video. I totally truly have a better understanding on how derivatives work now. Nicely done!.
This was seriously such a great video! I went from understanding little to nothing about derivatives to knowing the concept like the back of my hand! Thank you so much, you made quite a lot easier for me in terms of school. I'm definitely subbed!
Watching this is refreshing in 2023. Amazing stuff
I've watched many videos and this is the best explanation yet. Very well done. You're appreciated and keep it up
You are literally the best finance professor i have ever listened to. I don't think i have ever told an individual this... Your diagrams are amazingly clear and i like how you use a diagram to explain the whole concept. You really know what your talking about and i can't say i was bored listening to this video one bit. Thanks for the great video! also i was wondering if it is possible if you could make a video on algorithms ?
Hi Patty, I'm scheduled to attend a seminar covering various aspects of Commodity Derivatives, and I was quite uninformed about it until watching this 10-minute session. I'm grateful for the insight it provided. Thanks bro!
WOW!!! Thank you so much for explaining that in a simplified way that's easy to understand
Will always think of turkeys now when I think of derivatives. Thanks for the simple and fantastic explanation!
Very well explained through great examples, so that even a novice or beginner with no knowledge of financial jargons can understand ! I believe this is only possible, when one has extensive knowledge about his subject !
Really enjoying these white board lessons. Thank you for sharing!
Well explained and a very simple example to understand. Couldn't believe this is a decade old video.
I read two books about this, and it seemed so complicated to me. You made it easy .Thanks for the explanation
These are some of the best explanations I have ever heard
Your Confidence and communication are awesome, Paddy
I am Sincerely grateful for your teaching methods.... Thank you!
after looking at other videos, this really helped me alot. Thanks!!!
Amazing. Real Good Simple Example. A BIG THUMB’s up. Wondering (wishing) if you have videos on financial markets / Trade Life cycle e.t.c
This is so greatly explained! Your page has become my go-to as I’m trying to understand these terms. Thank you!
@meiyokechan1396
4 жыл бұрын
Me too
Amazing clarity and great ability to impart knowledge. Superb delivery . Thanks
I love how you get right into the incredibly amazing content. Your videos are amazing! Thank you very much
Superb explanation just under 11 minutes which need whole day to learn in class.
I will have to watch this a couple of times. When I am not settled with an evenings beer!
Well explained thanks for showcasing your great teaching concepts
Thanks for wonderful presentation..Can you please make vedio on types of swaps...ie. interest rate swap, currency swap, commodity swap and equity Index swap...
Great explanation as usual. Please come back!
Appreciation from Canada for your easy to understand video. Thumbs up .
Brilliant teacher, super choices of examples and injection of some humour.
Fantastic explanation. Clear, succinct, and enjoyable! Thanks.
This was great, thanks for explain this sort of vague concept in a way I fully understand now
Very Very good explanation of the term Derivative. Thank you.
THANK YOU SO MUCH FOR THIS VIDEO. It really help me under this. Now I can explain it to others if they ask me.
Thank you for your information with beautiful explanation about derivatives.keep continue the same.thanks a lot. i enjoyed
This is how you teach- simple and applicable. Thanks for the video.
Who cares about student fees,you can learn anything for free. Thanks
@oneandone2744
4 жыл бұрын
The web, YT should technically make college obsolete.
@ptnibin123456
4 жыл бұрын
@Pet C It doesn't exactly make college obsolete if you are looking for a job, but it does greatly help if you are self-employed or running a business, increasing your knowledge!!
@jay-xj1om
4 жыл бұрын
@Pat C Actually, if you bust your ass you can do an external PhD by just handing in an original dissertation. Professors have the ability to grant PhDs to people who have no previous degrees if they prove themselves competent enough on an "exception basis" (exception because nobody does this).
@jay-xj1om
4 жыл бұрын
@@ptnibin123456 It does if you work on a portfolio of projects. No need for college. And I say that as a Mathematician. University is nice if you want structure and to be spoon-fed, but not at US prices. UK is borderline, getting shittier by the year (in terms of quality and in terms of the tuition hike that happened about a decade back). Germany is nice to leech in term of value and they'll happily bend over and subvention you with their insane taxes. US college is borderline fraud, I wouldn't even consider it. US universities I don't know, but the prices are still ludicrous.
thank you very much. you made it simple and interesting yet thorough
I was looking for a wholesome description of what the derivatives market is, how it funcions, the scale and use of it, why it's several times larger than the combined net worth of the entire world, and why several people say it's extremely dangerous in it's current practice. This video provided me with the first half of what i was looking for. I'm now going to look through the other uploads of this channel to see if i find the rest, or anything else interresting. If anyone got a link, plz share
thanks alot, you are amazing at explaining something that everyone else makes so complicated.
This was really easy to understand. Thank you for simplifying it so much!
@Ben Dreis Derivatives are supposed to give people a way to hedge against fluctuations of prices. For eg; the turkey may cost less than $15 in the future, and the forward contract they agreed upon would benefit the farmer, while Terry secures the turkeys for thanksgiving. Of course, using an options contract in this case would benefit Terry more, since he may choose not to accept the delivery of the turkey in the future if supply is plentiful and prices of turkey in the markets are below $15; in which case he forfeits the $50 he paid for the option and purchase the turkey from the market instead. Although useful as a tool for risk management, it can be used for speculation as well. Why the need for complication? Such contracts exists since the birth of capitalism, and many businesses are able to benefit from it. For example, if you run a restaurant, you would usually place orders for your inventory in advance at a slated price. This is similar to a forward contract. The only difference is that people discovered they can strike gold by gambling with these contracts.
Simple and brilliantly explained! Thanks!
Great analogy and very clear intro to derivatives!
@samdiesel2000
4 жыл бұрын
finally found a true comment, instead of attention seeking dandies, in a vain effort of trying to spark off wit and sarcasm .
He , Mr Hirsch , knows his trade and has the charisma of transmitting his knowledge to his auditor.
Thanks so much. I wish ppl like you success in KZread
The explanation is so clear, I even had an “aha” moment. Thank you very much
Really well done and expertly narrated.
This was very helpful and simple! Loved it!
To the point and well explained. Thank you Sir!!!
Wow 😳 what a great and amazing person you are at what you do. Explanation on point!
Brilliant, Absolutely Perfect, Great Explanation...
Thank you for your wonderful presentation
Thank you for a good clip, sir :) Very pedagogic and easy to follow!
I am proud of you. You help me understand how derivatives work. Thank you!
Nicely explained.Thank you!
Excellent presentation
It was a great intro for financial illiterate like me. Thanks so much.
TOSS THE MARKER what a great explanation! :D
Great video 😊 finally understand futures, thank you
Binge watching these wonderful videos. Paddy Hirsch and chill.
Thank you. Clear and concise
Thank you so much for the explanation really clear!!
Absolutely brilliant. Thanks man.
This is excellent because it's explained simply and clearly. Thank you! :D
@johnsalvaterra1355
3 жыл бұрын
Very good presentation. Shows how everything can be skewed. Today the derivatives markets are valued (by some) at 2 quadrillion dollars. A staggering sum of money. Now look at the value of the world's stock markets, bonds, realestate, basically all the assets behind the markets, and you will find many more contracts, than the assets to cover the contracts. So much is the whole financial system is so completely out of balance, and we'll all need a drink.
very easy to understand and a clear example! thanks!!!
Wow, very well explain. thank you. The swap and Underling is when it becames complicated and there is not transparency. How many swaps can you make with one contract?
great video. good and clear! wish they all were as clearly explained
I love how the innocent marker gets tossed about at the end of videos. Great exit strategy!
Very simple and smooth !! keep them coming please
was expecting a calculus explanation. I'm still happy I clicked
Thanks for the simple explanation!
Good video. It's like "derivatives for dummue." Thanks!
Bro you smashed that explanation!
This is a great video. The concept has been explained so easily and in a language that anyone can understand. O. Fernandez
Very well explained , the whole system is an insane house of cards - and the roof and walls are made made of paper ,waiting for the perfect storm. Mean while , the farmers work their nuts off being the only valuable cogs in the machine.
These videos are amazing, thank you!!!
I thought for futures and forwards that money wasn't paid until delivery of the underlying (unless using a margin account in the case of futures)?
great explanation. Thanks!
Excellent - very well explained!!
Thank You, you made that real easy.
Terry is now a vegetarian.
Great explanation!! You're truly brilliant!
Hey you look kinda like Mr. Robert De Niro. Thanks for the lesson by the way, it's really on point!