Derivatives, in simple terms, are both a risk, a risk-reducer. Staff Writer. The Columbus Dispatch. The derivative has become one of the financial world's most important risk-management tools.

Part one – derivative basic terms: Derivatives Demystified: By Upul Arunajith : As in any field, be it Medicine, Accounting, or even Sports, there are numerous technical terms that are not within the ...

In simple terms, an investor can buy a derivative which bets that the market will move against them so that they win either way. Getting out of hand? The image of derivatives as highly risky ...