This can be found
http://community.marketwatch.com/groups/buy-house/topics/article-credit-mess
It goes like this
Derivatives are financial instruments that have no intrinsic value but derive their value from something else. Basically, they are just bets. You can “hedge your bet” that something you own will go up by placing a side bet that it will go down. “Hedge funds” hedge bets in the derivatives market. Bets can be placed on anything, from the price of tea in China to the movements of specific markets.
Fleur
9 years ago
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