I think you should make a video on Pros and cons about the derivative and how it’s different from normal stock in detail , this might help ppl understand a little better
Good video, but there's something i dont get. Is an option the "thing/object" which value depends on other assets? At the start of the video you explained what an derivative is, and then used an option as an example. So did this video explain what an option is, or what a derivative is?
With crypto you have things such as leverage tokens which are bull or bear , I’m kind of new to stocks but is there something like this also ? For example instead of me having to have a margin account to profit off a down turn for apple are there some type of shares I can buy that are bear? Or are my only options options / margin short selling ? I know with SP500 we have proshares and stuff like that but is there something for single stocks like apple , or like nio etc stuff like that? Thank you
I see he is getting a lot of flack for his explanation. My 2 cents of input would be: If you gave more examples .. ie: when you used AAPL as the asset (Object A) to derive Object B - and stated the derivative VALUE is determined by what 'something else is doing' -- Inserting any real world example of that 'something else doing something and it's effect on the object B value' would help people wrap their brains around the cyclical nature of B comes from A,.. B can't exist without A (thus derived from)... B's value is dependent on this abstract notion of 'something else'. Therefore defining 'something else' even just a real example of a real world event that caused a value change of the derivative (B) to be (Whatever) because in this provided example ABC happened ---- gives context/perspective to --- again -- the undefined and unrelatable to those who don't know what derivatives are to begin with (those likely watching this video). Best way I can describe it plainly is to take big numbers for example.. say 1 Trillion or 1 Quadrillion. 99.999% of people REALLY don't know what that looks like, can't visualize such a number, and so it's just a word really. Now if I say 1 Quadrillion is 1/6th of the entire water in all of the Great Lakes ... or the Great Lakes = 6 Quadrillion gallons of water - Then it loosely takes a completely abstract word/number and gives it a real world visualization and some meaning. The more examples the better this becomes. So if I also say,.. the entire financial assets of planet earth = 1 Quadrillion US Dollars.. that helps.. and so on. Now ...your explanation very clearly explains the distinction that the derivative market is created and wouldn't exist without the asset or Object A (which you did give an example of a stock.. in this case Apple). You clearly said, it simple means derived (or created from) -- so you take your example.. Apple Stock and apply this,.. it's derivative(s) are created from the Stock itself and are independent. There is relation between A and B - but you alluded to a loose interdependence with broad assumptions that just because the primary asset (object A, ie: Apple Stock) is going up it doesn't mean the derivative will be necessarily increasing in value. This depends again ("it depends") but examples weren't given thus it limits the understanding. I personally understand that it gets even more convoluted with the different types of derivatives but I think picking a common real world example derivative of stock and common occurrences that cause these derivatives to perform in certain ways would be 'reasonable' example(s) to help define the aforementioned Object B , aka: Derivative (at least in principle/function). Nonetheless, great video - I'm not 'hating' on your explanation or being negative.. just trying to offer a touch of constructive criticism that may or may not even be beneficial. We all see things differently, and you understand Derivatives in all their forms (I'm sure) quite well.. so you have to separate yourself from your own understanding and put yourself in the space of someone who has never heard of a derivative and formulate the explanation as succinctly as you can. Thanks for the video - It is still helpful.
I dont think the derivatives THEMSELVES caused the crash. it was the intention behind the creation of the derivatives. The greedy desire for more mortgages to be created and for there to be more avenues of exposure to the mortgages which could allow for more trading/betting.
@@claytrader When you are making videos, just remember not to post it so you don't waste people's time. Good luck with making all the money in the market.
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I think you should make a video on Pros and cons about the derivative and how it’s different from normal stock in detail , this might help ppl understand a little better
Thanks for suggestion!
@@claytrader you should, cause you are amazing.
@@ARSHADKHAN-sb2lj thanks
Excellent. You do good work putting things in simple terms. Not haughty or overly flowery.
I appreciate that!
Colors were helpful giving a visual along with explanation , made it very clear, not sure why so may critics ?
Thanks for watching!
Thank you for the explanation.
You are welcome!
Great Explanation Buddy
Thanks! 👍
Thank you for this
My pleasure!
Excellent
Thank you! Cheers!
why would you want to buy an option instead of the stock?
Many reasons!
I like how you explain that bud.
Happy to help!
great explanation! thank you
Glad it was helpful!
Amazing illustration!
Thank you! Cheers!
Thank you
You're welcome
Good video, but there's something i dont get. Is an option the "thing/object" which value depends on other assets?
At the start of the video you explained what an derivative is, and then used an option as an example. So did this video explain what an option is, or what a derivative is?
The "thing" the option value depends on is a "stock".
Mathematically, it is dx/dy = derivative = ratio of rate of changes in x-y direction.
Right, but that just overly complicates things.
You made this seem so simple, and o thought it was something complicated. Thanks lol
Glad it helped!
Thank you for simplifying this definition.
You're very welcome!
Isn’t Object A (AAPL) value derived from news/earnings?
No, it's derived from "perception".
Difficult to understand
Can you explain easy way with example in amount
Maye this can help: claytrader.com/videos/the-big-basics-of-day-trading-options-online-guide/
With crypto you have things such as leverage tokens which are bull or bear , I’m kind of new to stocks but is there something like this also ? For example instead of me having to have a margin account to profit off a down turn for apple are there some type of shares I can buy that are bear? Or are my only options options / margin short selling ? I know with SP500 we have proshares and stuff like that but is there something for single stocks like apple , or like nio etc stuff like that? Thank you
if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/
Nice, thanks for this!
You're welcome. Glad you enjoyed.
I see he is getting a lot of flack for his explanation. My 2 cents of input would be: If you gave more examples .. ie: when you used AAPL as the asset (Object A) to derive Object B - and stated the derivative VALUE is determined by what 'something else is doing' -- Inserting any real world example of that 'something else doing something and it's effect on the object B value' would help people wrap their brains around the cyclical nature of B comes from A,.. B can't exist without A (thus derived from)... B's value is dependent on this abstract notion of 'something else'. Therefore defining 'something else' even just a real example of a real world event that caused a value change of the derivative (B) to be (Whatever) because in this provided example ABC happened ---- gives context/perspective to --- again -- the undefined and unrelatable to those who don't know what derivatives are to begin with (those likely watching this video).
Best way I can describe it plainly is to take big numbers for example.. say 1 Trillion or 1 Quadrillion. 99.999% of people REALLY don't know what that looks like, can't visualize such a number, and so it's just a word really. Now if I say 1 Quadrillion is 1/6th of the entire water in all of the Great Lakes ... or the Great Lakes = 6 Quadrillion gallons of water - Then it loosely takes a completely abstract word/number and gives it a real world visualization and some meaning. The more examples the better this becomes. So if I also say,.. the entire financial assets of planet earth = 1 Quadrillion US Dollars.. that helps.. and so on.
Now ...your explanation very clearly explains the distinction that the derivative market is created and wouldn't exist without the asset or Object A (which you did give an example of a stock.. in this case Apple). You clearly said, it simple means derived (or created from) -- so you take your example.. Apple Stock and apply this,.. it's derivative(s) are created from the Stock itself and are independent. There is relation between A and B - but you alluded to a loose interdependence with broad assumptions that just because the primary asset (object A, ie: Apple Stock) is going up it doesn't mean the derivative will be necessarily increasing in value. This depends again ("it depends") but examples weren't given thus it limits the understanding.
I personally understand that it gets even more convoluted with the different types of derivatives but I think picking a common real world example derivative of stock and common occurrences that cause these derivatives to perform in certain ways would be 'reasonable' example(s) to help define the aforementioned Object B , aka: Derivative (at least in principle/function).
Nonetheless, great video - I'm not 'hating' on your explanation or being negative.. just trying to offer a touch of constructive criticism that may or may not even be beneficial. We all see things differently, and you understand Derivatives in all their forms (I'm sure) quite well.. so you have to separate yourself from your own understanding and put yourself in the space of someone who has never heard of a derivative and formulate the explanation as succinctly as you can.
Thanks for the video - It is still helpful.
Thanks for taking the time to share. Cheers!
It was off-putting to see markers used on a blackboard. It seemed so.
It's awesome and you know it... stop denying it!
I dont think the derivatives THEMSELVES caused the crash. it was the intention behind the creation of the derivatives. The greedy desire for more mortgages to be created and for there to be more avenues of exposure to the mortgages which could allow for more trading/betting.
It was banks lending out money to people that could not afford it which was the problem, but the banks were being forced to do it by the government...
@@claytrader Government was forcing banks to lend out sub prime mortgages? What the hell. Why?
@@jireh5941 because didn't you know? people are entitled to having a home!
Clear as mud Seems like a financial smoke and mirrors, poof and your money is gone. Like magic. Black magic.
They can be risky for sure!
I've heard worse explanations of a concept but for a life of me I just can't recall when.
Oh I get it, you're one of those people.
Where’s your amazing explanation then Mark?
@@cianlernihan6417 lol... your flaw is you think trolls actually are serious individuals!
@@claytrader your explanation was beautifully put and well explained. trolls always gonna hate😎
@@jjt171 thanks!
its not bad you just explained it badly. work on itt teacherr preacher
Thanks for the feedback.
This was a horrible explanation...
Thanks for the constructive feedback.
@@claytrader lol.. I sense sarcasm. ;) I'm still looking for the constructive (serving a useful purpose) part of the feedback.
@@GuessTechSports :-)
For the love of God, stop changing colors and explain
Stay away from the markets. You are way too emotional.
@@claytrader Stay away from the youtube. Your teaching method is way too slow and confusing.
@@amirmo6615 when you are losing money in the markets, just remember who warned you. Take care.
@@claytrader When you are making videos, just remember not to post it so you don't waste people's time.
Good luck with making all the money in the market.
@@amirmo6615 Cheers
thank you
You're welcome