Financial Derivatives and Their Application in Enterprises

DOI

10.2991/assehr.k.211209.535How to use a DOI?

Keywords

Financial derivatives; Risks; Application; Hedging; Speculation arbitrage

Abstract

With the opening of the financial market, the financial derivatives market has also encountered greater development opportunities. However, opportunities and challenges always coexist, so enterprises must use financial derivatives reasonably and correctly. This paper adopts the method of combining theoretical analysis with case analysis to introduce the types, risks, applicable mechanisms and typical application cases of financial derivatives in detail. In addition, through detailed descriptions of the theoretical underpinning, the reader could learn about the trading processes and profitability mechanisms of several major derivatives, as well as conducting immersive simulations through case studies. Through in-depth analysis and research, it is concluded that enterprises should actively invest in technology and resource support, use derivatives to control risks and realize enterprise value. Hedging, rather than random speculation, should be the first rule of thumb for companies using derivatives. It is hoped that the research of this paper can provide a good way for existing enterprises to use derivatives to avoid risks and help the financial derivatives market achieve steady development.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Wanying Huang
AU  - Xinrun Yao
PY  - 2021
DA  - 2021/12/15
TI  - Financial Derivatives and Their Application in Enterprises
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 3277
EP  - 3282
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.535
DO  - 10.2991/assehr.k.211209.535
ID  - Huang2021
ER  -