Derivatives | Marketplace Whiteboard

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  • Опубліковано 11 тра 2024
  • Credit default swaps? They're complicated and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common - they're both derivatives. Paddy Hirsch explains. #MarketplaceAPM #Whiteboard #EconomicExplainers
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КОМЕНТАРІ • 516

  • @jchi1ds
    @jchi1ds 4 роки тому +549

    The smartest people explain things in the simplest terms.

    • @remlatzargonix1329
      @remlatzargonix1329 4 роки тому +10

      John Childs ...yes, he is very good....I say this as someone with post graduate degrees in this stuff, and I really enjoyed his explanations!

    • @onenationunderduress8994
      @onenationunderduress8994 4 роки тому +22

      I wouldn’t say the ‘smartest people.’ I would say one who truly understands something can explain it in simple terms.

    • @TechieTard
      @TechieTard 4 роки тому

      ooOOOhhh, I get it!

    • @timothyphoenix4209
      @timothyphoenix4209 4 роки тому +3

      @@onenationunderduress8994 Or ones that are simply good at educating.

    • @johnboykin3128
      @johnboykin3128 4 роки тому

      Monetized contracts

  • @mcf-662
    @mcf-662 4 роки тому +275

    You're arguably the only person on UA-cam who doesn't waste even a nanosecond to advertise his channel and gets right into the incredibly worthy content. I LOVE your videos! Thank you so very much ♥️

    • @DrRock2009
      @DrRock2009 4 роки тому +3

      Antares 555 FYI: Dr Berg is the same....

    • @herp_derp
      @herp_derp 4 роки тому +4

      His videos are from the golden age of Youtubr. This stuff really wasn't common back then.

    • @van91nq
      @van91nq 3 роки тому +1

      so true

    • @QOOQ-ew3uq
      @QOOQ-ew3uq 2 роки тому +1

      If you like this you'll like Kai Rysdall and the Marketplace team every weekday

    • @oussamachouichi5677
      @oussamachouichi5677 2 роки тому +2

      And sadly pays a price for that, once he made a presentation of his book at Google, asked the audience if they know the channel almost not a soul replied.
      Somehow, internet favors the fake and the pretentious over the straight-to-the-point people.

  • @mayacho4910
    @mayacho4910 Рік тому +197

    The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?

    • @mariahhayes5089
      @mariahhayes5089 Рік тому

      For the average person, these techniques are rather demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.

    • @raymondbarnes5264
      @raymondbarnes5264 Рік тому

      Working with a reputable investing coach is now the greatest market approach. Since a while ago, I've been in contact with a coach, mostly because I don't have the breadth of knowledge or mental fortitude to handle these recurrent market conditions. I made almost $700k during this downturn, demonstrating that the market is more complex than most people realize.

    • @helenoliver4838
      @helenoliver4838 Рік тому

      @@raymondbarnes5264 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?

    • @raymondbarnes5264
      @raymondbarnes5264 Рік тому

      @@helenoliver4838 My consultant is 'MARTHA ALONSO HARA" I found her on a CNBC interview where she was featured and reached out to her afterwards. You can look her up online, i basically follow her trade pattern.

    • @helenoliver4838
      @helenoliver4838 Рік тому

      @@raymondbarnes5264 Found her webpage. I wrote her a message, hopefully she responds, I plan for this 2023 to be my year of financial success.

  • @ABCD-jl6dj
    @ABCD-jl6dj 7 років тому +159

    Great Down-to-Earth Examples nicely explained by someone who actually really looks like he wants to teach people. Best I came across! Keep it up and thanks a lot.

    • @toddlavigne6441
      @toddlavigne6441 5 років тому +3

      totally agree....this guy is a great teacher

    • @oneandone2744
      @oneandone2744 4 роки тому

      So true! You know Ray Diallo (?) and Steve Ackman are pretty good too.

  • @MrOmniblast
    @MrOmniblast 9 років тому +248

    I was looking for calculus, but...I think I'll start a drug empire now; thanks!

    • @FireVortex720
      @FireVortex720 9 років тому +6

      lmao nice one

    • @kebman
      @kebman 5 років тому +10

      I'm going for a Turkey empire myself. I'm going to RULE Thanks Giving!

    • @dariknour6051
      @dariknour6051 5 років тому

      MrOmniblast 😂😂😂

    • @davidc2837
      @davidc2837 4 роки тому

      lmfao

    • @henningokholm7912
      @henningokholm7912 4 роки тому +2

      Notice how 300 is mentioned and in the second example 20 "times" 15 is the same. How cool is that.

  • @workwithnature
    @workwithnature 4 роки тому +30

    great explanation. So basically the counter party risk regarding derivatives are that underlying assets can be worth a lot less at a later date.

    • @nikon800
      @nikon800 2 роки тому

      That's not counter party risk. If somehow when the time comes and the seller of the future/forward cannot deliver the product, that is counter party risk.

  • @_Junkers
    @_Junkers 7 років тому +18

    +Marketplace APM What's great about your explanations is that you don't rely on jargon. Most other tutorials will reference concepts as if you already know what they are. This is great for newbies. Thanks for this!

  • @thomkb
    @thomkb 3 роки тому +2

    You have always been able to explain things succinctly and hold my interest. I've been enjoying this entire series.

  • @sunkanmibero
    @sunkanmibero 7 років тому +47

    I love it when he tosses the maker. beautifully well explained. #dropthemic.

  • @gamofa2
    @gamofa2 2 роки тому +3

    I have listened to about five different lecturers without understanding what derivative is but this is the one that has been explained smartly.

  • @meticulousgeek
    @meticulousgeek 4 роки тому +7

    Even 10 years later I learned more economics from watching a few of these videos than all of my years in high school.

  • @Chrisinsocal
    @Chrisinsocal 4 роки тому +8

    I’ve been in the financial services industry for almost a decade and I love how this man explains otherwise very complex instruments and concepts. I listen to it so that I can keep that concept in mind when explaining these concepts to clients. Great channel!

    • @Chrisinsocal
      @Chrisinsocal 4 роки тому

      Luke Daly We’re everywhere! Lol

  • @monpesh9732
    @monpesh9732 4 роки тому +18

    This is the best explanation I have ever come across. Well done

  • @ys2bfree35
    @ys2bfree35 8 років тому +8

    Thank you for making this video. I totally truly have a better understanding on how derivatives work now. Nicely done!.

  • @drfranz29
    @drfranz29 7 місяців тому +1

    Watching this is refreshing in 2023. Amazing stuff

  • @oneandone2744
    @oneandone2744 4 роки тому +2

    Love it! That's the best explanation I've heard about derivatives in ages. There was an old saying "no one born before 1970's understands what derivatives are..".

  • @dianamcmanus3789
    @dianamcmanus3789 4 роки тому +4

    I am only 13 and I understood everything in your video! You are amazing at explaining economics!

  • @patrickgathara8757
    @patrickgathara8757 4 роки тому +17

    i was reeling badly and needing a drink trying to understand wall street until i stumbled upon this legend, thank you good sir!

    • @oneandone2744
      @oneandone2744 4 роки тому

      I enjoyed the story about Bruce Kovner reading "The history of Interest Rates" to get started. He was driving a cab in the seventies, borrowed three thousand on his card to get started. His shock at making forty thousand in two days, and losing thirty thousand on fruit commodities the third day.

  • @Shreyankit9091
    @Shreyankit9091 4 роки тому +3

    Sir , you are a champion . The world needs teachers like you . Kudos to the videos !!

  • @abdallababikir4473
    @abdallababikir4473 4 роки тому +40

    I watched seven minutes before realizing this isn't about math derivatives...

    • @rickyreyes30
      @rickyreyes30 3 роки тому

      This is the same concept of a derivative. It's the change of the underlying asset over time.

    • @craigjoyner9857
      @craigjoyner9857 3 роки тому

      No F’(x) here.

  • @mayakozza440
    @mayakozza440 2 роки тому

    This was seriously such a great video! I went from understanding little to nothing about derivatives to knowing the concept like the back of my hand! Thank you so much, you made quite a lot easier for me in terms of school. I'm definitely subbed!

  • @matthewfraser6604
    @matthewfraser6604 4 роки тому

    I've watched many videos and this is the best explanation yet. Very well done. You're appreciated and keep it up

  • @jledford5644
    @jledford5644 4 роки тому +1

    Excellent explanation! This is the first time I have seen this derivative problem explained in such detail. Thank you.

  • @RyanGrubeProductions
    @RyanGrubeProductions 11 років тому +2

    You are literally the best finance professor i have ever listened to. I don't think i have ever told an individual this... Your diagrams are amazingly clear and i like how you use a diagram to explain the whole concept. You really know what your talking about and i can't say i was bored listening to this video one bit.
    Thanks for the great video! also i was wondering if it is possible if you could make a video on algorithms ?

  • @Kanfachan
    @Kanfachan 4 роки тому +1

    WOW!!! Thank you so much for explaining that in a simplified way that's easy to understand

  • @shreya978
    @shreya978 8 років тому +9

    Thanks for wonderful presentation..Can you please make vedio on types of swaps...ie. interest rate swap, currency swap, commodity swap and equity Index swap...

  • @dougcrescimanno
    @dougcrescimanno 7 років тому +3

    Really enjoying these white board lessons. Thank you for sharing!

  • @yaweli2968
    @yaweli2968 4 місяці тому

    This is how you teach- simple and applicable. Thanks for the video.

  • @shawn_car
    @shawn_car 3 роки тому +1

    Will always think of turkeys now when I think of derivatives. Thanks for the simple and fantastic explanation!

  • @sara55555saraable
    @sara55555saraable 9 років тому +5

    Amazing. Real Good Simple Example. A BIG THUMB’s up. Wondering (wishing) if you have videos on financial markets / Trade Life cycle e.t.c

  • @arockdurai5110
    @arockdurai5110 4 роки тому

    Well explained and a very simple example to understand. Couldn't believe this is a decade old video.

  • @FloRykielRamos
    @FloRykielRamos 5 років тому

    after looking at other videos, this really helped me alot. Thanks!!!

  • @chrispeterson3464
    @chrispeterson3464 6 років тому

    These are some of the best explanations I have ever heard

  • @DavidSwires
    @DavidSwires 4 роки тому

    I love how you get right into the incredibly amazing content. Your videos are amazing! Thank you very much

  • @Invest-qh3jh
    @Invest-qh3jh Місяць тому

    This was really easy to understand. Thank you for simplifying it so much!

  • @renzolujan1575
    @renzolujan1575 4 роки тому +2

    This is so greatly explained! Your page has become my go-to as I’m trying to understand these terms. Thank you!

  • @Dave-bz3lr
    @Dave-bz3lr 3 роки тому

    Very well explained through great examples, so that even a novice or beginner with no knowledge of financial jargons can understand ! I believe this is only possible, when one has extensive knowledge about his subject !

  • @abdelrahmanfahoum9461
    @abdelrahmanfahoum9461 5 років тому +1

    I am Sincerely grateful for your teaching methods.... Thank you!

  • @sophosalpha
    @sophosalpha 3 роки тому

    Your Confidence and communication are awesome, Paddy

  • @SoReal369
    @SoReal369 5 років тому +1

    THANK YOU SO MUCH FOR THIS VIDEO. It really help me under this. Now I can explain it to others if they ask me.

  • @moonrakerschalker
    @moonrakerschalker 13 років тому

    I read two books about this, and it seemed so complicated to me. You made it easy .Thanks for the explanation

  • @blessingayden622
    @blessingayden622 5 років тому +1

    Well explained thanks for showcasing your great teaching concepts

  • @rameshsambamoorthy783
    @rameshsambamoorthy783 2 роки тому

    Amazing clarity and great ability to impart knowledge. Superb delivery . Thanks

  • @cameronbrooks1141
    @cameronbrooks1141 4 роки тому +1

    This was great, thanks for explain this sort of vague concept in a way I fully understand now

  • @PJDuro
    @PJDuro 9 років тому +11

    Great analogy and very clear intro to derivatives!

    • @samdiesel2000
      @samdiesel2000 4 роки тому

      finally found a true comment, instead of attention seeking dandies, in a vain effort of trying to spark off wit and sarcasm .

  • @constantinmubadibantukalon4218
    @constantinmubadibantukalon4218 3 місяці тому

    I am proud of you. You help me understand how derivatives work. Thank you!

  • @khankrum1
    @khankrum1 4 роки тому +2

    I will have to watch this a couple of times. When I am not settled with an evenings beer!

  • @hemanthkumarvanapalli6137
    @hemanthkumarvanapalli6137 6 років тому

    Thank you for your information with beautiful explanation about derivatives.keep continue the same.thanks a lot. i enjoyed

  • @someoneelse.2252
    @someoneelse.2252 4 роки тому

    Appreciation from Canada for your easy to understand video. Thumbs up .

  • @logicthreedee
    @logicthreedee 12 років тому

    Fantastic explanation. Clear, succinct, and enjoyable! Thanks.

  • @wilsonmanch6773
    @wilsonmanch6773 4 роки тому

    Thanks so much. I wish ppl like you success in UA-cam

  • @marcusrakyat8891
    @marcusrakyat8891 4 роки тому

    Superb explanation just under 11 minutes which need whole day to learn in class.

  • @express375
    @express375 13 років тому +53

    Who cares about student fees,you can learn anything for free.
    Thanks

    • @oneandone2744
      @oneandone2744 4 роки тому

      The web, YT should technically make college obsolete.

    • @ptnibin123456
      @ptnibin123456 4 роки тому +3

      @Pet C It doesn't exactly make college obsolete if you are looking for a job, but it does greatly help if you are self-employed or running a business, increasing your knowledge!!

    • @jay-xj1om
      @jay-xj1om 4 роки тому

      @Pat C Actually, if you bust your ass you can do an external PhD by just handing in an original dissertation. Professors have the ability to grant PhDs to people who have no previous degrees if they prove themselves competent enough on an "exception basis" (exception because nobody does this).

    • @jay-xj1om
      @jay-xj1om 4 роки тому

      @@ptnibin123456 It does if you work on a portfolio of projects. No need for college. And I say that as a Mathematician.
      University is nice if you want structure and to be spoon-fed, but not at US prices.
      UK is borderline, getting shittier by the year (in terms of quality and in terms of the tuition hike that happened about a decade back). Germany is nice to leech in term of value and they'll happily bend over and subvention you with their insane taxes. US college is borderline fraud, I wouldn't even consider it. US universities I don't know, but the prices are still ludicrous.

  • @mohaargurpreet
    @mohaargurpreet 3 місяці тому

    It was a great intro for financial illiterate like me. Thanks so much.

  • @gulllars
    @gulllars 12 років тому

    I was looking for a wholesome description of what the derivatives market is, how it funcions, the scale and use of it, why it's several times larger than the combined net worth of the entire world, and why several people say it's extremely dangerous in it's current practice.
    This video provided me with the first half of what i was looking for. I'm now going to look through the other uploads of this channel to see if i find the rest, or anything else interresting. If anyone got a link, plz share

  • @potawatomi100
    @potawatomi100 4 роки тому +2

    Really well done and expertly narrated.

  • @mdawson12345
    @mdawson12345 4 роки тому +1

    Great explanation as usual. Please come back!

  • @sargedessy
    @sargedessy 10 років тому +3

    @Ben Dreis Derivatives are supposed to give people a way to hedge against fluctuations of prices. For eg; the turkey may cost less than $15 in the future, and the forward contract they agreed upon would benefit the farmer, while Terry secures the turkeys for thanksgiving. Of course, using an options contract in this case would benefit Terry more, since he may choose not to accept the delivery of the turkey in the future if supply is plentiful and prices of turkey in the markets are below $15; in which case he forfeits the $50 he paid for the option and purchase the turkey from the market instead. Although useful as a tool for risk management, it can be used for speculation as well. Why the need for complication? Such contracts exists since the birth of capitalism, and many businesses are able to benefit from it. For example, if you run a restaurant, you would usually place orders for your inventory in advance at a slated price. This is similar to a forward contract. The only difference is that people discovered they can strike gold by gambling with these contracts.

  • @jonnynsofor
    @jonnynsofor 10 років тому

    thank you very much. you made it simple and interesting yet thorough

  • @ivanaldal
    @ivanaldal 4 роки тому

    Simple and brilliantly explained! Thanks!

  • @000hariviv
    @000hariviv 4 роки тому

    Binge watching these wonderful videos. Paddy Hirsch and chill.

  • @ganeshlall3178
    @ganeshlall3178 9 років тому +1

    Very Very good explanation of the term Derivative. Thank you.

  • @got2bharmony
    @got2bharmony 4 роки тому

    Brilliant teacher, super choices of examples and injection of some humour.

  • @ioannislazaridis6159
    @ioannislazaridis6159 4 роки тому +1

    He , Mr Hirsch , knows his trade and has the charisma of transmitting his knowledge to his auditor.

  • @davidorsa4406
    @davidorsa4406 4 роки тому

    To the point and well explained. Thank you Sir!!!

  • @Ruby-vm5zu
    @Ruby-vm5zu 4 роки тому

    This was very helpful and simple! Loved it!

  • @pyuiec
    @pyuiec 14 років тому

    thanks alot, you are amazing at explaining something that everyone else makes so complicated.

  • @cynthiaDNkoom
    @cynthiaDNkoom 3 роки тому

    Wow 😳 what a great and amazing person you are at what you do. Explanation on point!

  • @ashakelahi9879
    @ashakelahi9879 2 роки тому

    Great explanation man! just love t. After seeing this presentation I subscribe to the channel. Good Job!

  • @MarkCeeee
    @MarkCeeee 7 років тому +3

    Excellent presentation

  • @farisallawati
    @farisallawati 13 років тому

    Very simple and smooth !! keep them coming please

  • @32nikhilpatel78
    @32nikhilpatel78 9 місяців тому

    Thank you for the information.

  • @rickcarrarini5696
    @rickcarrarini5696 4 роки тому

    Thank you. Clear and concise

  • @marialuisarojimarco3776
    @marialuisarojimarco3776 4 роки тому

    Thank you so much for the explanation really clear!!

  • @taton007
    @taton007 12 років тому +1

    Thanks for the simple explanation!

  • @prashantpacific2575
    @prashantpacific2575 4 роки тому +2

    Absolutely brilliant. Thanks man.

  • @pcstalin1
    @pcstalin1 10 років тому

    Thank you for your wonderful presentation

  • @Orca8472
    @Orca8472 11 років тому

    Thank you for a good clip, sir :) Very pedagogic and easy to follow!

  • @chaseramos4865
    @chaseramos4865 4 роки тому +1

    was expecting a calculus explanation. I'm still happy I clicked

  • @danecarter5454
    @danecarter5454 9 років тому +1

    I thought for futures and forwards that money wasn't paid until delivery of the underlying (unless using a margin account in the case of futures)?

  • @nicolasbouyiouclis4726
    @nicolasbouyiouclis4726 4 роки тому

    Very good and simple explanation!
    Thanks bod...

  • @ritikagadale5270
    @ritikagadale5270 3 роки тому

    U r a great teacher! thanks for ur help.

  • @deniskatashkentskiy
    @deniskatashkentskiy 12 років тому

    very easy to understand and a clear example! thanks!!!

  • @legacyal3489
    @legacyal3489 11 місяців тому

    that's great teaching, I wish you kept with the videos

  • @21580anwar
    @21580anwar 12 років тому

    Great lecture...thanx.i now understand the concepts...

  • @DavidValinGSense
    @DavidValinGSense 4 роки тому

    Brilliant, Absolutely Perfect, Great Explanation...

  • @GaiusGaiusGaius
    @GaiusGaiusGaius 10 років тому +41

    Terry is now a vegetarian.

  • @juanluislapuz780
    @juanluislapuz780 6 років тому

    Great video 😊 finally understand futures, thank you

  • @abbasali001
    @abbasali001 9 років тому

    Nicely explained.Thank you!

  • @irael9042
    @irael9042 2 роки тому

    Thank you. This was very helpful.

  • @nirmalraj5979
    @nirmalraj5979 4 роки тому

    Very well explained sir, thank you

  • @SilverRose09
    @SilverRose09 14 років тому

    Wow, very well explain. thank you. The swap and Underling is when it becames complicated and there is not transparency.
    How many swaps can you make with one contract?

  • @rrssmooth6643
    @rrssmooth6643 4 роки тому

    I love your explanations.

  • @raheel10598
    @raheel10598 6 місяців тому

    Very easy flowing , thanks for that

  • @ninanoble8350
    @ninanoble8350 11 років тому

    Excellent - very well explained!!

  • @magicaznkidz
    @magicaznkidz 12 років тому

    This is excellent because it's explained simply and clearly. Thank you! :D

    • @johnsalvaterra1355
      @johnsalvaterra1355 3 роки тому

      Very good presentation. Shows how everything can be skewed. Today the derivatives markets are valued (by some) at 2 quadrillion dollars. A staggering sum of money. Now look at the value of the world's stock markets, bonds, realestate, basically all the assets behind the markets, and you will find many more contracts, than the assets to cover the contracts. So much is the whole financial system is so completely out of balance, and we'll all need a drink.

  • @remidanvin4057
    @remidanvin4057 2 роки тому

    Great clear explanation as usual

  • @googooboyy
    @googooboyy 3 роки тому

    I love how the innocent marker gets tossed about at the end of videos. Great exit strategy!

  • @hardpala97
    @hardpala97 2 роки тому

    The explanation is so clear, I even had an “aha” moment. Thank you very much

  • @LukrecijaPav
    @LukrecijaPav 2 роки тому

    This video helped me a lot. Thanks