If you are not better informed than the highly paid professionals in banks and other institutions,you should use derivatives for hedging,not for speculation.

Question

Quizplus · Accepted Answer

Using derivatives for speculation requires a deep understanding of the market and its behavior, which is usually possessed by highly paid professionals. Therefore, if you do not have such knowledge, it is better to use derivatives for hedging purposes rather than speculating.

If You Are Not Better Informed Than the Highly Paid