Chapter 20
Delving into Derivative Investments
In This Chapter
Understanding derivatives
Gearing up your risks
Trading the options market
Taking a trip to the bookmakers
Considering contracts with differences
Looking at warrants
If you have a nervous disposition, you may want to skip this chapter. It’s all about how you can lose not just your shirt but everything else you own. It covers the one investment opportunity in this book from which you can end up with more than minus everything, because not only can your investment money go down to zero, but you also can end up owing cash over and above those losses. Very financially painful!
That sounds unbelievably awful, and it can be. So why should you grit your teeth and read this chapter? Because these types of investments, called derivatives, are advertised everywhere. They include contracts for difference, spread bets, traded options ...
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