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Are Derivatives destructive financial instruments? Or Have some utility?

Accounting Investments Financial Reporting Derivatives Finance
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/04/23
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Muhammad Umair Arain
by Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC

By Managing it in a suitable way its really great toll to manage risk for conglomerates and group of Co,s

YOUSAF IHSAN
by YOUSAF IHSAN , Business Process Analyst , Air Canada

If used for hedging they are useful. If used for speculation could be disastrous. That's why some call derivatives weapons of mass destruction in financial industry.

Anoop Mohan
by Anoop Mohan , Finance Manager , Arafa plywoods

Actually derivatives are blessing to the market with out them how you will mitigate risk by hedging and it provides a good share of Volume by thus improves overall liquidity

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