Derivatives | Marketplace Whiteboard

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  • เผยแพร่เมื่อ 14 พ.ค. 2024
  • Credit default swaps? They're complicated and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common - they're both derivatives. Paddy Hirsch explains. #MarketplaceAPM #Whiteboard #EconomicExplainers
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ความคิดเห็น • 516

  • @jchi1ds
    @jchi1ds 4 ปีที่แล้ว +549

    The smartest people explain things in the simplest terms.

    • @remlatzargonix1329
      @remlatzargonix1329 4 ปีที่แล้ว +10

      John Childs ...yes, he is very good....I say this as someone with post graduate degrees in this stuff, and I really enjoyed his explanations!

    • @onenationunderduress8994
      @onenationunderduress8994 4 ปีที่แล้ว +22

      I wouldn’t say the ‘smartest people.’ I would say one who truly understands something can explain it in simple terms.

    • @TechieTard
      @TechieTard 4 ปีที่แล้ว

      ooOOOhhh, I get it!

    • @timothyphoenix4209
      @timothyphoenix4209 4 ปีที่แล้ว +3

      @@onenationunderduress8994 Or ones that are simply good at educating.

    • @johnboykin3128
      @johnboykin3128 4 ปีที่แล้ว

      Monetized contracts

  • @mcf-662
    @mcf-662 4 ปีที่แล้ว +275

    You're arguably the only person on TH-cam who doesn't waste even a nanosecond to advertise his channel and gets right into the incredibly worthy content. I LOVE your videos! Thank you so very much ♥️

    • @DrRock2009
      @DrRock2009 4 ปีที่แล้ว +3

      Antares 555 FYI: Dr Berg is the same....

    • @herp_derp
      @herp_derp 4 ปีที่แล้ว +4

      His videos are from the golden age of Youtubr. This stuff really wasn't common back then.

    • @van91nq
      @van91nq 3 ปีที่แล้ว +1

      so true

    • @QOOQ-ew3uq
      @QOOQ-ew3uq 2 ปีที่แล้ว +1

      If you like this you'll like Kai Rysdall and the Marketplace team every weekday

    • @oussamachouichi5677
      @oussamachouichi5677 2 ปีที่แล้ว +2

      And sadly pays a price for that, once he made a presentation of his book at Google, asked the audience if they know the channel almost not a soul replied.
      Somehow, internet favors the fake and the pretentious over the straight-to-the-point people.

  • @MrOmniblast
    @MrOmniblast 9 ปีที่แล้ว +248

    I was looking for calculus, but...I think I'll start a drug empire now; thanks!

    • @FireVortex720
      @FireVortex720 9 ปีที่แล้ว +6

      lmao nice one

    • @kebman
      @kebman 5 ปีที่แล้ว +10

      I'm going for a Turkey empire myself. I'm going to RULE Thanks Giving!

    • @dariknour6051
      @dariknour6051 5 ปีที่แล้ว

      MrOmniblast 😂😂😂

    • @davidc2837
      @davidc2837 4 ปีที่แล้ว

      lmfao

    • @henningokholm7912
      @henningokholm7912 4 ปีที่แล้ว +2

      Notice how 300 is mentioned and in the second example 20 "times" 15 is the same. How cool is that.

  • @ABCD-jl6dj
    @ABCD-jl6dj 7 ปีที่แล้ว +159

    Great Down-to-Earth Examples nicely explained by someone who actually really looks like he wants to teach people. Best I came across! Keep it up and thanks a lot.

    • @toddlavigne6441
      @toddlavigne6441 5 ปีที่แล้ว +3

      totally agree....this guy is a great teacher

    • @oneandone2744
      @oneandone2744 4 ปีที่แล้ว

      So true! You know Ray Diallo (?) and Steve Ackman are pretty good too.

  • @thomkb
    @thomkb 3 ปีที่แล้ว +2

    You have always been able to explain things succinctly and hold my interest. I've been enjoying this entire series.

  • @_Junkers
    @_Junkers 7 ปีที่แล้ว +18

    +Marketplace APM What's great about your explanations is that you don't rely on jargon. Most other tutorials will reference concepts as if you already know what they are. This is great for newbies. Thanks for this!

  • @workwithnature
    @workwithnature 4 ปีที่แล้ว +30

    great explanation. So basically the counter party risk regarding derivatives are that underlying assets can be worth a lot less at a later date.

    • @nikon800
      @nikon800 2 ปีที่แล้ว

      That's not counter party risk. If somehow when the time comes and the seller of the future/forward cannot deliver the product, that is counter party risk.

  • @gamofa2
    @gamofa2 2 ปีที่แล้ว +3

    I have listened to about five different lecturers without understanding what derivative is but this is the one that has been explained smartly.

  • @ys2bfree35
    @ys2bfree35 8 ปีที่แล้ว +8

    Thank you for making this video. I totally truly have a better understanding on how derivatives work now. Nicely done!.

  • @meticulousgeek
    @meticulousgeek 4 ปีที่แล้ว +7

    Even 10 years later I learned more economics from watching a few of these videos than all of my years in high school.

  • @oneandone2744
    @oneandone2744 4 ปีที่แล้ว +2

    Love it! That's the best explanation I've heard about derivatives in ages. There was an old saying "no one born before 1970's understands what derivatives are..".

  • @mayakozza440
    @mayakozza440 2 ปีที่แล้ว

    This was seriously such a great video! I went from understanding little to nothing about derivatives to knowing the concept like the back of my hand! Thank you so much, you made quite a lot easier for me in terms of school. I'm definitely subbed!

  • @Chrisinsocal
    @Chrisinsocal 4 ปีที่แล้ว +8

    I’ve been in the financial services industry for almost a decade and I love how this man explains otherwise very complex instruments and concepts. I listen to it so that I can keep that concept in mind when explaining these concepts to clients. Great channel!

    • @Chrisinsocal
      @Chrisinsocal 4 ปีที่แล้ว

      Luke Daly We’re everywhere! Lol

  • @Shreyankit9091
    @Shreyankit9091 4 ปีที่แล้ว +3

    Sir , you are a champion . The world needs teachers like you . Kudos to the videos !!

  • @sunkanmibero
    @sunkanmibero 7 ปีที่แล้ว +47

    I love it when he tosses the maker. beautifully well explained. #dropthemic.

  • @matthewfraser6604
    @matthewfraser6604 4 ปีที่แล้ว

    I've watched many videos and this is the best explanation yet. Very well done. You're appreciated and keep it up

  • @jledford5644
    @jledford5644 4 ปีที่แล้ว +1

    Excellent explanation! This is the first time I have seen this derivative problem explained in such detail. Thank you.

  • @dianamcmanus3789
    @dianamcmanus3789 4 ปีที่แล้ว +4

    I am only 13 and I understood everything in your video! You are amazing at explaining economics!

  • @patrickgathara8757
    @patrickgathara8757 4 ปีที่แล้ว +17

    i was reeling badly and needing a drink trying to understand wall street until i stumbled upon this legend, thank you good sir!

    • @oneandone2744
      @oneandone2744 4 ปีที่แล้ว

      I enjoyed the story about Bruce Kovner reading "The history of Interest Rates" to get started. He was driving a cab in the seventies, borrowed three thousand on his card to get started. His shock at making forty thousand in two days, and losing thirty thousand on fruit commodities the third day.

  • @monpesh9732
    @monpesh9732 4 ปีที่แล้ว +18

    This is the best explanation I have ever come across. Well done

  • @Kanfachan
    @Kanfachan 4 ปีที่แล้ว +1

    WOW!!! Thank you so much for explaining that in a simplified way that's easy to understand

  • @RyanGrubeProductions
    @RyanGrubeProductions 11 ปีที่แล้ว +2

    You are literally the best finance professor i have ever listened to. I don't think i have ever told an individual this... Your diagrams are amazingly clear and i like how you use a diagram to explain the whole concept. You really know what your talking about and i can't say i was bored listening to this video one bit.
    Thanks for the great video! also i was wondering if it is possible if you could make a video on algorithms ?

  • @dougcrescimanno
    @dougcrescimanno 7 ปีที่แล้ว +3

    Really enjoying these white board lessons. Thank you for sharing!

  • @drfranz29
    @drfranz29 7 หลายเดือนก่อน +1

    Watching this is refreshing in 2023. Amazing stuff

  • @shawn_car
    @shawn_car 3 ปีที่แล้ว +1

    Will always think of turkeys now when I think of derivatives. Thanks for the simple and fantastic explanation!

  • @DavidSwires
    @DavidSwires 4 ปีที่แล้ว

    I love how you get right into the incredibly amazing content. Your videos are amazing! Thank you very much

  • @sara55555saraable
    @sara55555saraable 9 ปีที่แล้ว +5

    Amazing. Real Good Simple Example. A BIG THUMB’s up. Wondering (wishing) if you have videos on financial markets / Trade Life cycle e.t.c

  • @chrispeterson3464
    @chrispeterson3464 6 ปีที่แล้ว

    These are some of the best explanations I have ever heard

  • @Dave-bz3lr
    @Dave-bz3lr 3 ปีที่แล้ว

    Very well explained through great examples, so that even a novice or beginner with no knowledge of financial jargons can understand ! I believe this is only possible, when one has extensive knowledge about his subject !

  • @abdallababikir4473
    @abdallababikir4473 4 ปีที่แล้ว +40

    I watched seven minutes before realizing this isn't about math derivatives...

    • @rickyreyes30
      @rickyreyes30 3 ปีที่แล้ว

      This is the same concept of a derivative. It's the change of the underlying asset over time.

    • @craigjoyner9857
      @craigjoyner9857 3 ปีที่แล้ว

      No F’(x) here.

  • @abdelrahmanfahoum9461
    @abdelrahmanfahoum9461 5 ปีที่แล้ว +1

    I am Sincerely grateful for your teaching methods.... Thank you!

  • @rameshsambamoorthy783
    @rameshsambamoorthy783 2 ปีที่แล้ว

    Amazing clarity and great ability to impart knowledge. Superb delivery . Thanks

  • @arockdurai5110
    @arockdurai5110 4 ปีที่แล้ว

    Well explained and a very simple example to understand. Couldn't believe this is a decade old video.

  • @renzolujan1575
    @renzolujan1575 4 ปีที่แล้ว +2

    This is so greatly explained! Your page has become my go-to as I’m trying to understand these terms. Thank you!

  • @FloRykielRamos
    @FloRykielRamos 5 ปีที่แล้ว

    after looking at other videos, this really helped me alot. Thanks!!!

  • @sophosalpha
    @sophosalpha 3 ปีที่แล้ว

    Your Confidence and communication are awesome, Paddy

  • @shreya978
    @shreya978 9 ปีที่แล้ว +9

    Thanks for wonderful presentation..Can you please make vedio on types of swaps...ie. interest rate swap, currency swap, commodity swap and equity Index swap...

  • @Invest-qh3jh
    @Invest-qh3jh หลายเดือนก่อน

    This was really easy to understand. Thank you for simplifying it so much!

  • @hemanthkumarvanapalli6137
    @hemanthkumarvanapalli6137 6 ปีที่แล้ว

    Thank you for your information with beautiful explanation about derivatives.keep continue the same.thanks a lot. i enjoyed

  • @blessingayden622
    @blessingayden622 5 ปีที่แล้ว +1

    Well explained thanks for showcasing your great teaching concepts

  • @logicthreedee
    @logicthreedee 12 ปีที่แล้ว

    Fantastic explanation. Clear, succinct, and enjoyable! Thanks.

  • @someoneelse.2252
    @someoneelse.2252 4 ปีที่แล้ว

    Appreciation from Canada for your easy to understand video. Thumbs up .

  • @SoReal369
    @SoReal369 5 ปีที่แล้ว +1

    THANK YOU SO MUCH FOR THIS VIDEO. It really help me under this. Now I can explain it to others if they ask me.

  • @cameronbrooks1141
    @cameronbrooks1141 4 ปีที่แล้ว +1

    This was great, thanks for explain this sort of vague concept in a way I fully understand now

  • @yaweli2968
    @yaweli2968 5 หลายเดือนก่อน

    This is how you teach- simple and applicable. Thanks for the video.

  • @marcusrakyat8891
    @marcusrakyat8891 4 ปีที่แล้ว

    Superb explanation just under 11 minutes which need whole day to learn in class.

  • @potawatomi100
    @potawatomi100 4 ปีที่แล้ว +2

    Really well done and expertly narrated.

  • @wilsonmanch6773
    @wilsonmanch6773 4 ปีที่แล้ว

    Thanks so much. I wish ppl like you success in TH-cam

  • @moonrakerschalker
    @moonrakerschalker 13 ปีที่แล้ว

    I read two books about this, and it seemed so complicated to me. You made it easy .Thanks for the explanation

  • @khankrum1
    @khankrum1 4 ปีที่แล้ว +2

    I will have to watch this a couple of times. When I am not settled with an evenings beer!

  • @constantinmubadibantukalon4218
    @constantinmubadibantukalon4218 3 หลายเดือนก่อน

    I am proud of you. You help me understand how derivatives work. Thank you!

  • @got2bharmony
    @got2bharmony 4 ปีที่แล้ว

    Brilliant teacher, super choices of examples and injection of some humour.

  • @ivanaldal
    @ivanaldal 4 ปีที่แล้ว

    Simple and brilliantly explained! Thanks!

  • @davidorsa4406
    @davidorsa4406 4 ปีที่แล้ว

    To the point and well explained. Thank you Sir!!!

  • @jonnynsofor
    @jonnynsofor 10 ปีที่แล้ว

    thank you very much. you made it simple and interesting yet thorough

  • @mdawson12345
    @mdawson12345 4 ปีที่แล้ว +1

    Great explanation as usual. Please come back!

  • @ganeshlall3178
    @ganeshlall3178 9 ปีที่แล้ว +1

    Very Very good explanation of the term Derivative. Thank you.

  • @PJDuro
    @PJDuro 9 ปีที่แล้ว +11

    Great analogy and very clear intro to derivatives!

    • @samdiesel2000
      @samdiesel2000 4 ปีที่แล้ว

      finally found a true comment, instead of attention seeking dandies, in a vain effort of trying to spark off wit and sarcasm .

  • @cynthiaDNkoom
    @cynthiaDNkoom 3 ปีที่แล้ว

    Wow 😳 what a great and amazing person you are at what you do. Explanation on point!

  • @Ruby-vm5zu
    @Ruby-vm5zu 4 ปีที่แล้ว

    This was very helpful and simple! Loved it!

  • @sargedessy
    @sargedessy 10 ปีที่แล้ว +3

    @Ben Dreis Derivatives are supposed to give people a way to hedge against fluctuations of prices. For eg; the turkey may cost less than $15 in the future, and the forward contract they agreed upon would benefit the farmer, while Terry secures the turkeys for thanksgiving. Of course, using an options contract in this case would benefit Terry more, since he may choose not to accept the delivery of the turkey in the future if supply is plentiful and prices of turkey in the markets are below $15; in which case he forfeits the $50 he paid for the option and purchase the turkey from the market instead. Although useful as a tool for risk management, it can be used for speculation as well. Why the need for complication? Such contracts exists since the birth of capitalism, and many businesses are able to benefit from it. For example, if you run a restaurant, you would usually place orders for your inventory in advance at a slated price. This is similar to a forward contract. The only difference is that people discovered they can strike gold by gambling with these contracts.

  • @000hariviv
    @000hariviv 4 ปีที่แล้ว

    Binge watching these wonderful videos. Paddy Hirsch and chill.

  • @ashakelahi9879
    @ashakelahi9879 2 ปีที่แล้ว

    Great explanation man! just love t. After seeing this presentation I subscribe to the channel. Good Job!

  • @farisallawati
    @farisallawati 13 ปีที่แล้ว

    Very simple and smooth !! keep them coming please

  • @pyuiec
    @pyuiec 14 ปีที่แล้ว

    thanks alot, you are amazing at explaining something that everyone else makes so complicated.

  • @MarkCeeee
    @MarkCeeee 7 ปีที่แล้ว +3

    Excellent presentation

  • @nicolasbouyiouclis4726
    @nicolasbouyiouclis4726 4 ปีที่แล้ว

    Very good and simple explanation!
    Thanks bod...

  • @Orca8472
    @Orca8472 11 ปีที่แล้ว

    Thank you for a good clip, sir :) Very pedagogic and easy to follow!

  • @deniskatashkentskiy
    @deniskatashkentskiy 12 ปีที่แล้ว

    very easy to understand and a clear example! thanks!!!

  • @legacyal3489
    @legacyal3489 11 หลายเดือนก่อน

    that's great teaching, I wish you kept with the videos

  • @marialuisarojimarco3776
    @marialuisarojimarco3776 4 ปีที่แล้ว

    Thank you so much for the explanation really clear!!

  • @gulllars
    @gulllars 12 ปีที่แล้ว

    I was looking for a wholesome description of what the derivatives market is, how it funcions, the scale and use of it, why it's several times larger than the combined net worth of the entire world, and why several people say it's extremely dangerous in it's current practice.
    This video provided me with the first half of what i was looking for. I'm now going to look through the other uploads of this channel to see if i find the rest, or anything else interresting. If anyone got a link, plz share

  • @pcstalin1
    @pcstalin1 10 ปีที่แล้ว

    Thank you for your wonderful presentation

  • @juanluislapuz780
    @juanluislapuz780 6 ปีที่แล้ว

    Great video 😊 finally understand futures, thank you

  • @abbasali001
    @abbasali001 9 ปีที่แล้ว

    Nicely explained.Thank you!

  • @express375
    @express375 13 ปีที่แล้ว +53

    Who cares about student fees,you can learn anything for free.
    Thanks

    • @oneandone2744
      @oneandone2744 4 ปีที่แล้ว

      The web, YT should technically make college obsolete.

    • @ptnibin123456
      @ptnibin123456 4 ปีที่แล้ว +3

      @Pet C It doesn't exactly make college obsolete if you are looking for a job, but it does greatly help if you are self-employed or running a business, increasing your knowledge!!

    • @jay-xj1om
      @jay-xj1om 4 ปีที่แล้ว

      @Pat C Actually, if you bust your ass you can do an external PhD by just handing in an original dissertation. Professors have the ability to grant PhDs to people who have no previous degrees if they prove themselves competent enough on an "exception basis" (exception because nobody does this).

    • @jay-xj1om
      @jay-xj1om 4 ปีที่แล้ว

      @@ptnibin123456 It does if you work on a portfolio of projects. No need for college. And I say that as a Mathematician.
      University is nice if you want structure and to be spoon-fed, but not at US prices.
      UK is borderline, getting shittier by the year (in terms of quality and in terms of the tuition hike that happened about a decade back). Germany is nice to leech in term of value and they'll happily bend over and subvention you with their insane taxes. US college is borderline fraud, I wouldn't even consider it. US universities I don't know, but the prices are still ludicrous.

  • @rickcarrarini5696
    @rickcarrarini5696 4 ปีที่แล้ว

    Thank you. Clear and concise

  • @chaseramos4865
    @chaseramos4865 4 ปีที่แล้ว +1

    was expecting a calculus explanation. I'm still happy I clicked

  • @21580anwar
    @21580anwar 12 ปีที่แล้ว

    Great lecture...thanx.i now understand the concepts...

  • @ioannislazaridis6159
    @ioannislazaridis6159 4 ปีที่แล้ว +1

    He , Mr Hirsch , knows his trade and has the charisma of transmitting his knowledge to his auditor.

  • @hardpala97
    @hardpala97 2 ปีที่แล้ว

    The explanation is so clear, I even had an “aha” moment. Thank you very much

  • @DavidValinGSense
    @DavidValinGSense 4 ปีที่แล้ว

    Brilliant, Absolutely Perfect, Great Explanation...

  • @taton007
    @taton007 12 ปีที่แล้ว +1

    Thanks for the simple explanation!

  • @nirmalraj5979
    @nirmalraj5979 4 ปีที่แล้ว

    Very well explained sir, thank you

  • @BigBusRecords
    @BigBusRecords 11 ปีที่แล้ว

    great video. good and clear! wish they all were as clearly explained

  • @remidanvin4057
    @remidanvin4057 2 ปีที่แล้ว

    Great clear explanation as usual

  • @ninanoble8350
    @ninanoble8350 11 ปีที่แล้ว

    Excellent - very well explained!!

  • @ritikagadale5270
    @ritikagadale5270 4 ปีที่แล้ว

    U r a great teacher! thanks for ur help.

  • @mohaargurpreet
    @mohaargurpreet 3 หลายเดือนก่อน

    It was a great intro for financial illiterate like me. Thanks so much.

  • @omarkhan5223
    @omarkhan5223 4 ปีที่แล้ว

    Great explanation!! You're truly brilliant!

  • @prashantpacific2575
    @prashantpacific2575 4 ปีที่แล้ว +2

    Absolutely brilliant. Thanks man.

  • @financeabcs
    @financeabcs 2 ปีที่แล้ว

    Awesome explanation! Interested in Personal Finance and investing. New to your channel!! Liked and subscribed!! 😎

  • @googooboyy
    @googooboyy 3 ปีที่แล้ว

    I love how the innocent marker gets tossed about at the end of videos. Great exit strategy!

  • @paturro
    @paturro 12 ปีที่แล้ว

    Great explanation, and very clear....

  • @raheel10598
    @raheel10598 6 หลายเดือนก่อน

    Very easy flowing , thanks for that

  • @janepaul7811
    @janepaul7811 4 ปีที่แล้ว

    So well explained!! Thank you:)

  • @familytran3870
    @familytran3870 3 ปีที่แล้ว

    Very useful information, easy to understand even for aomeone like me. Thank you

  • @meeral8703
    @meeral8703 4 ปีที่แล้ว

    These videos are amazing, thank you!!!

  • @erniehudson1
    @erniehudson1 12 ปีที่แล้ว

    you are a really talented teacher

  • @irael9042
    @irael9042 2 ปีที่แล้ว

    Thank you. This was very helpful.