SeedStockers is a renowned seed bank that offers a wide range of high-quality cannabis seeds. With a commitment to excellence, SeedStockers has gained popularity among both novice and experienced growers worldwide. In this comprehensive guide, we will delve into the features and advantages of SeedStockers Seeds, exploring their genetics, cultivation tips, and the variety of strains available. Whether you are a first-time grower or a seasoned expert, this guide will provide you with valuable insights to enhance your cannabis cultivation experience.

SeedStockers Genetics:

SeedStockers is dedicated to providing genetics of exceptional quality. The seed bank meticulously selects and breeds its seeds to ensure desirable traits, such as high potency, abundant yields, and robust genetics. By collaborating with renowned breeders and growers, SeedStockers continuously strives to offer seeds that meet the demands of a diverse range of cannabis enthusiasts.

Advantages of SeedStockers Seeds:

High Germination Rates:

SeedStockers Seeds have a reputation for excellent germination rates. The seed bank employs rigorous quality control measures to ensure that every seed you receive has the best chance of sprouting and thriving.

Genetic Stability:

SeedStockers prioritizes genetic stability in their seeds. This means that you can expect consistency in terms of plant structure, potency, and overall performance. This reliability allows growers to cultivate crops with predictable characteristics, ensuring a more successful and satisfying cultivation experience.

Broad Strain Selection:

One of the major advantages of SeedStockers Seeds is their vast strain selection. Whether you prefer indica, sativa, or hybrid strains, SeedStockers offers an extensive catalog to cater to diverse preferences. From classic favorites to innovative hybrids, their collection is sure to have something for everyone.

Feminized and Autoflowering Options:

SeedStockers provides both feminized and autoflowering seeds. Feminized seeds ensure that your plants will predominantly produce female flowers, maximizing your yields. Autoflowering seeds are particularly popular among novice growers, as they transition into the flowering stage automatically, without requiring strict light schedules. This convenience makes autoflowering strains a great choice for growers seeking a quick turnaround.

Cultivation Tips:

Germination:

To ensure successful germination of SeedStockers Seeds, it is uk cali strain recommended to use the paper towel method or pre-soak them in water for 12-24 hours. Maintain a temperature of around 70-80°F (21-27°C) and keep the environment consistently moist but not soaking wet. Within a few days, you should see the seeds sprout with healthy taproots.

Indoor Cultivation:

When cultivating SeedStockers Seeds indoors, consider factors such as lighting, humidity, and ventilation. Provide your plants with a suitable grow light system, ensuring they receive the right spectrum and intensity throughout their growth cycle. Monitor humidity levels to prevent issues like mold and mildew. Adequate airflow and ventilation are essential for maintaining a healthy environment and preventing pests and diseases.

Outdoor Cultivation:

For outdoor cultivation of SeedStockers Seeds, choose a suitable location that offers plenty of sunlight and protection from strong winds. Ensure that the soil is well-draining and enriched with organic matter. Start planting your seeds after the last frost date, giving your plants a longer vegetative period to reach their full potential. Regularly monitor and address any pest or disease issues that may arise.

Popular SeedStockers Strains:

Wedding Cake:

Wedding Cake is a highly popular strain from SeedStockers, known for its sweet and earthy flavors. With potent THC levels, this indica-dominant hybrid delivers a relaxing and euphoric experience. Its dense buds are covered in resinous trichomes, making it a favorite among cannabis connoisseurs.

Gelato 41:

Gelato 41 is another top-notch strain offered by SeedStockers. With its fruity and dessert-like aroma, Gelato 41 entices users with its delightful taste. This balanced hybrid produces compact and resinous buds, offering a well-rounded experience with uplifting cerebral effects and a soothing body high.

Amnesia:

SeedStockers' Amnesia is a classic sativa strain that has stood the test of time. Known for its potent effects and uplifting qualities, Amnesia is favored by those seeking a cerebral and energizing experience. Its distinct citrus and earthy flavors add to its overall appeal.

SeedStockers: Beyond the Seeds:

SeedStockers not only provides high-quality seeds but also offers a wealth of additional resources for growers. Their website features comprehensive strain descriptions, cultivation tips, and a community forum where growers can connect and share their experiences. Additionally, SeedStockers regularly updates their blog with informative articles, keeping growers up to date with the latest trends and techniques in cannabis cultivation.

Conclusion:

SeedStockers Seeds has established itself as a reputable seed bank, offering an extensive range of high-quality cannabis seeds. With a focus on genetic stability, broad strain selection, and excellent germination rates, SeedStockers provides growers with the tools they need to cultivate successful and rewarding cannabis crops. By following the cultivation tips provided and exploring their popular strains, you can embark on a fulfilling journey of cannabis cultivation with SeedStockers Seeds.

As the popularity of vaping continues to grow, more and more individuals are considering it as an alternative to traditional smoking. For beginners, choosing the right vape kit can be overwhelming due to the wide variety of options available online. This guide aims to provide a comprehensive overview of starter vape kits, outlining the key components, factors to consider, and some popular options available online. By the end of this guide, you'll be well-equipped to make an informed decision and embark on your vaping journey.

Understanding Starter Vape Kits:

Starter vape kits are designed specifically for beginners who are new to vaping. These kits typically include everything you need to get started, ensuring a hassle-free vaping experience. A typical starter kit consists of a battery (mod), a tank or atomizer, coils, a charger, and sometimes even e-liquid. It's important to note that while starter kits are beginner-friendly, they can also be suitable for experienced vapers looking for a compact and convenient setup.

Factors to Consider When Choosing a Starter Vape Kit:
Before diving into the online world of starter vape kits, there are a few important factors to consider to ensure you make the right choice:

Budget:

Determining your budget is a crucial step in choosing a starter vape kit. Prices can vary significantly, ranging from budget-friendly options to more high-end kits. Decide how much you are willing to invest, keeping in mind that higher-priced kits often offer better performance and additional features.

Vaping Style:

Consider your preferred vaping style when selecting a starter kit. Are you looking for direct-to-lung (DTL) vaping, which offers bigger clouds and more airflow, or mouth-to-lung (MTL) vaping, which simulates the sensation of smoking cigarettes? Understanding your vaping style will help you choose a kit that suits your preferences.

Ease of Use:

As a beginner, it's important to choose a starter vape kit that is easy to use and assemble. Look for kits with user-friendly features like one-button operation, easy coil replacements, and clear instructions.

Battery Life and Capacity:

Consider the battery life and capacity of the starter kit you're interested in. A longer battery life will ensure your device lasts throughout the day without the need for frequent recharging. Similarly, a larger tank capacity means you won't have to refill your e-liquid as often.

Popular Starter Vape Kits Online:

Now that we have covered the essential factors to consider, let's explore some popular starter vape kits available online:

Vaporesso Luxe PM40:

The Vaporesso Luxe PM40 is a compact and stylish starter kit that offers a powerful performance. It features a built-in 1800mAh battery, a 4ml e-liquid capacity, and adjustable wattage settings. The Luxe PM40 utilizes replaceable GTX coils and is compatible with both DTL and MTL vaping styles. Its user-friendly interface, fast charging capabilities, and ergonomic design make it an excellent choice for beginners.

Voopoo Drag X Plus:

The Voopoo Drag X Plus is a versatile starter kit that combines style and performance. It boasts a 5.5ml e-liquid capacity, an external 18650 battery, and a maximum power output of 100W. The Drag X Plus features Voopoo's innovative GENE.FAN 2.0 chip, offering fast firing Premium e-juice brands online speeds and advanced safety features. With its adjustable airflow system and compatibility with various coils, the Drag X Plus caters to both DTL and MTL vaping preferences.

GeekVape Aegis Mini:

The GeekVape Aegis Mini is a rugged and durable starter kit that is built to withstand the rigors of daily use. It features an internal 2200mAh battery, a 2ml tank capacity, and a maximum power output of 80W. The Aegis Mini is waterproof, dustproof, and shockproof, making it an ideal choice for vapers who lead an active lifestyle. It supports both DTL and MTL vaping and offers a range of coil options to suit individual preferences.

Where to Buy Starter Vape Kits Online:

When purchasing a starter vape kit online, it's important to choose a reputable and reliable vendor. Here are a few popular online platforms that offer a wide selection of starter vape kits:

Element Vape:

Element Vape is a well-established online retailer that offers a vast range of vape products, including starter kits. They provide detailed product descriptions, customer reviews, and competitive pricing, making it a reliable choice for purchasing a starter vape kit.

VaporDNA:

VaporDNA is a reputable online vape shop known for its extensive selection of products, competitive prices, and excellent customer service. They offer a wide variety of starter vape kits from various brands, ensuring you'll find the perfect fit for your vaping needs.

DirectVapor:

DirectVapor is a trusted online vape store that prides itself on providing authentic products at competitive prices. They offer a diverse range of starter vape kits, and their website features useful filters to help you narrow down your options based on your preferences.

Conclusion:

Choosing the right starter vape kit online is an important step in your vaping journey. By considering factors such as budget, vaping style, ease of use, and battery life, you can make an informed decision. Additionally, exploring popular options like the Vaporesso Luxe PM40, Voopoo Drag X Plus, and GeekVape Aegis Mini can help you find the perfect kit. Remember to purchase from reputable online platforms like Element Vape, VaporDNA, and DirectVapor to ensure you receive genuine products and quality customer service. Embrace this guide as your roadmap to selecting a starter vape kit that suits your needs and preferences, and enjoy your vaping experience responsibly.

Nitrazepam is a widely used medication primarily prescribed for the short-term treatment of insomnia and anxiety disorders. While obtaining medications from local pharmacies is the conventional approach, many individuals now prefer the convenience and cost-effectiveness of purchasing them online. This guide aims to provide valuable insights into buying nitrazepam online at affordable prices, ensuring safety, legality, and the best possible deals.

Understanding Nitrazepam:

Before delving into the process of buying nitrazepam online, it is essential to understand the medication itself. Nitrazepam belongs to the benzodiazepine class of drugs, known for their sedative and hypnotic properties. It acts by enhancing the effects of a neurotransmitter called gamma-aminobutyric acid (GABA) in the brain, thereby promoting relaxation and inducing sleep. Nitrazepam is available under various brand names and comes in different strengths.

Research and Legitimacy:

When buying nitrazepam online, the first step is to conduct thorough research to ensure the legitimacy and credibility of the platforms you consider. Look for online pharmacies that are licensed and reputable, preferably with positive reviews from previous customers. Verify their credentials, such as certification from regulatory authorities like the Food and Drug Administration (FDA) or equivalent organizations in your country.

Prescription Requirements:

Nitrazepam is a prescription-only medication in most countries, which means you will need a valid prescription from a healthcare professional to purchase it legally. Avoid websites that offer nitrazepam without requesting a prescription, as they may be engaging in illegal practices or selling counterfeit products. Online platforms that prioritize safety and compliance will typically ask for a prescription before allowing you to make a purchase.

Comparing Prices:

One of the significant advantages of buying nitrazepam online is the ability to compare prices across different platforms. Take advantage of this opportunity to find the most affordable option without compromising on quality and safety. Keep in mind that extremely low prices can be a red flag for counterfeit or substandard products, so exercise caution. Consider both the medication's cost and any additional fees, such as shipping or consultation charges.

International vs. Domestic Purchases:

Another aspect to consider is whether to opt for international or domestic online pharmacies. International pharmacies may offer lower prices due to variations in drug regulations and manufacturing costs. However, be aware of potential delays in shipping and customs regulations when ordering from abroad. Domestic purchases may provide faster delivery times and easier communication if any issues arise.

Security and Privacy:

Ensure that the online pharmacy you choose prioritizes security and privacy. Look for platforms that use encryption technology to protect your personal and financial information during transactions. Check their privacy policy to understand how they handle and store your data. Reputable online pharmacies will prioritize the confidentiality of your information and provide secure payment options.

Quality Assurance:

Purchasing medications online requires careful consideration of quality assurance measures. Look for online pharmacies that source their products from reputable manufacturers. Genuine nitrazepam should have proper packaging, clear labeling, and identifiable batch or lot numbers. Additionally, ensure that the online pharmacy follows good storage practices to maintain the medication's efficacy and safety during transit.

Customer Support:

Reliable customer support is crucial when buying nitrazepam online. A reputable online pharmacy should have accessible customer service channels, such as email, phone, or live chat, to address any concerns or queries you may have. Prompt and knowledgeable responses from customer support representatives can provide reassurance and help you make informed decisions.

Shipping and Delivery:

Consider the shipping and delivery options offered by online pharmacies. Reliable platforms will have secure packaging to protect the medication during transit and provide tracking information to monitor the delivery process. Some online pharmacies may offer free or discounted shipping options based on order value or location. It is advisable to choose a shipping method that ensures the timely and safe arrival of your nitrazepam while considering any additional costs involved.

Return and Refund Policies:

Review the return and refund policies of the online pharmacy before making a purchase. Reliable platforms often have clear guidelines on returns and refunds in case of damaged or incorrect products. Familiarize yourself with the process and any associated costs, such as shipping fees for returns. A reputable online pharmacy will prioritize customer satisfaction and address any issues promptly and professionally.

Online Reviews and Recommendations:

Before finalizing your decision, take the time to read online reviews and recommendations from other customers. Look for platforms with positive feedback regarding product quality, customer service, and overall user experience. Be cautious of suspiciously positive or overly negative reviews, as they may be biased or fake. Multiple reliable sources of feedback can help you gauge the reputation and reliability of the online pharmacy.

Legal Considerations:

Ensure that purchasing nitrazepam online is legal in your country or region. The regulations surrounding online medication sales can vary, so it is essential to be well-informed. In some cases, import restrictions or customs regulations may apply, and it is crucial to comply with any legal requirements. Familiarize yourself with the specific laws governing online purchases of medications in your jurisdiction to avoid any potential legal issues.

Consultation with a Healthcare Professional:

While this guide provides insights into buying nitrazepam online, it is important to emphasize the significance of consulting with a healthcare professional. Nitrazepam is a potent medication that should be buy pain meds without prescription used under medical supervision. Discuss your condition, symptoms, and treatment options with a qualified healthcare provider who can provide appropriate guidance and prescribe the medication if necessary.

Risks and Precautions:

Before using nitrazepam, it is important to be aware of potential risks and precautions associated with its use. Nitrazepam can cause drowsiness, dizziness, and impaired coordination. It may also have interactions with other medications or substances, so it is crucial to disclose your complete medical history and current medications to your healthcare provider. Follow the prescribed dosage and duration, and avoid alcohol and activities requiring alertness until you understand how nitrazepam affects you.

Conclusion:

Buying nitrazepam online at affordable prices can be a convenient and cost-effective option when done responsibly. Prioritize safety, legality, and quality assurance by researching reputable online pharmacies, ensuring prescription requirements are met, and comparing prices and services. Remember to prioritize your health and consult with a healthcare professional for appropriate guidance and supervision throughout your treatment. With thorough research and careful considerations, you can find a reliable online source for nitrazepam that offers both affordability and quality.

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 Produit dérivé gamer 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 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.

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 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 Produit dérivé manga 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.