Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

Financial Derivatives and Their Application in Enterprises

Authors
Wanying Huang1, *,a, , Xinrun Yao2, b,
1School of Earth and Environment, University of Leeds, LS2 9JT, Leeds UK
2School of Economics, University of Nottingham Ningbo China, 315000, Ningbo China

These authors contributed equally.

*Corresponding author. Email: aee19w2h@leeds.ac.uk
Corresponding Author
Wanying Huang
Available Online 15 December 2021.
DOI
https://doi.org/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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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
https://doi.org/10.2991/assehr.k.211209.535How to use a DOI?
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.

Cite this article

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  - https://doi.org/10.2991/assehr.k.211209.535
ID  - Huang2021
ER  -