In recent times, the rise of derivatives trading has exploded. But what are derivatives to begin with? Entrepreneur Hasan Marafi decodes derivatives in the simplest way possible.
Financial contracts that can derive their underlying value from the underlying asset are called derivatives in the stock market. The asset or security from which a derivative gets its value is called an underlying asset. In derivatives, the financial contracts could be stocks, bonds, indices, exchange rates, commodities, or the rate of interest. Being the guiding light to all potential investors and traders, Hasan has built an online community where he teaches his knowledge about the market.
Starting his career at 18, Hasan now holds in-depth experience in options and market trading. With his knowledge, the 25-year old entrepreneur started RippyGod Capital LLC, a one-stop trading destination for all amateur traders. Hasan and his team have brought a significant change in people's lives through this platform. His mentorship programs and online courses have made students self-reliant in achieving their financial goals. While many assume that derivatives trading is a trap as one is bound to lose hard-earned money. "Derivatives are complex in nature and are usually considered riskier for retail investors. Derivatives trading revolves around speculating on the future price action of an asset via the buying or selling of derivative contracts." Hasan emphasizes the need for trading with leverage as you can use a smaller amount of capital to gain exposure to more significant trading positions. In other terms, it is also called margin trading.
Hasan, in his courses, teaches students how to reduce risks while trading leveraged derivatives. Students learn to equip themselves with knowledge and plan a trading strategy before approaching the market. Courses also often teach the students about technical analysis, trendline analysis and give a detailed insight into support and resistance. Hasan also gives his knowledge on implementing a stop-loss for better risk management. It is significant to know that by keeping a stop-loss, one can control their losses if the market is unfavorable. Lastly, Hasan's online community platform Rippy Global has played an instrumental role in helping people attain financial freedom.
Isn't it amazing to be free from financial barriers in the early years of life?