Using Options and Futures as Tools of Capital Increase in Digital Economy

Abstract

The article provides basic notions of derivative market, shows what these finance tools are, how they work and how capital can be increased with their help. By citing examples from historical development and simple conventional examples the mechanism of derivatives’ functioning was explained and their links with underlying assets were studied, for instance it was shown how the value of exchange tool can enter the negative zone. Exchange and OTC markets were analyzed, their value was investigated on the basis of historical statistics of international finance institutions and mechanisms of their interaction with regulators on the territory of the Russian Federation and abroad were researched. Strategies of using these finance tools for speculation, hedging and arbitration were demonstrated, their advantages and disadvantages were identified. As a result the authors put forward strategy of entering overestimated market with the help of options.

Keywords

• derivatives
• forwards
• hedging
• exchange market
• capital