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Theoretical and Applied Economics
No. 9 / 2013 (586)

Pros and cons of using derivatives

Ramona GOGONCEA
The Bucharest University of Economic Studies
Ioana-Diana PAUN
The Bucharest University of Economic Studies

Abstract. The global financial crises that affected the world economy starting with 2008 have at least three factors of great influence. However, the general opinion and the conclusions of researches conducted are that one of the most significant factors that is the increase dealing with more complex financial instruments, such as derivatives.

The purpose of my research is to show the advantages given by using derivatives, being aware of the costs and risks associated.

Keywords: financial instruments; derivatives; risk management; credit risk; market risk.

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