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1) Why loss made in derivative transaction is the most important challenges to develop derivatives market...

1) Why loss made in derivative transaction is the most important challenges to develop derivatives market ?
2) Why some company use derivative product frequently on all the exposure ?

( 1 or 2 sentences enough already ) Thank You
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Answer #1

1) Deravative as a product was introduced as a product to hedge risk of a investor, but people now a days have used derivative market for speculation and trading . so, loss made in Derivative transaction is the most imporatant challange to develop derivatives market

2)Multi national companies have high amount of exposure on their trades as well as stock. Companies frequently use derivative to hedge their risk and minimize the losses

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