Pet ownership brings immense joy and companionship, and as responsible pet guardians, it is our duty to provide our furry friends with the best care possible. Gentle pet care goes beyond meeting their basic needs; it involves understanding their emotional and physical well-being, ensuring a safe environment, and nurturing a loving bond. This comprehensive guide aims to highlight the importance of gentle pet care and provide practical tips to help you create a harmonious and fulfilling relationship with your beloved companion.

Understanding Your Pet's Needs:

Every pet is unique and has individual requirements. Taking the time to understand their specific needs is crucial for their well-being. Familiarize yourself with their breed, age, and any special considerations they may have. Learn about their dietary requirements, exercise needs, and socialization requirements. This understanding will help you tailor their care to ensure they are happy and healthy.

Creating a Safe Environment:

Providing a safe environment is paramount to your pet's well-being. Remove any potential hazards from their living space, such as toxic plants, electrical wires, or small objects they could swallow. Secure any openings, such as fences or gates, to prevent escape. Ensure your home is free from harmful substances like household chemicals or human medications that could be toxic to pets. By creating a safe space, you can prevent accidents and keep your furry friend secure.

Nourishing with a Healthy Diet:

A balanced and nutritious diet is essential for your pet's overall health. Consult your veterinarian to determine the appropriate type and amount of food for your pet based on their age, breed, and any specific dietary needs. Opt for high-quality pet food that provides essential nutrients and avoid feeding them excessive treats or table scraps. Fresh water should always be available to keep them hydrated. Regular visits to the veterinarian will help monitor your pet's health and ensure their nutritional needs are being met.

Regular Exercise and Mental Stimulation:

Physical exercise and mental stimulation are vital for pets of all ages. Dogs require daily walks or playtime to burn off energy and maintain a healthy weight. Cats should have access to interactive toys, scratching posts, and vertical spaces to climb and explore. Engage in interactive play sessions with your pet, such as fetch or puzzle games, to stimulate their minds and prevent boredom. These activities not only keep your pet physically fit but also strengthen the bond between you.

Grooming and Hygiene:

Grooming plays a significant role in maintaining your pet's overall health and well-being. Regular brushing removes loose hair, prevents matting, and promotes a healthy coat. Trim their nails regularly to prevent discomfort or injury. Bathe your pet when necessary, using pet-friendly products specifically formulated for their species. Don't forget to clean their ears, teeth, and eyes regularly to prevent infections. Grooming sessions also provide an opportunity for bonding and can be a positive puppies and calming experience for your pet.

Emotional Well-being:

Pets have emotional needs too, and providing them with a nurturing and supportive environment is crucial. Spend quality time with your pet every day, offering them love, attention, and affection. Provide a comfortable and cozy space for them to relax and rest. Observe their body language and behavior to understand their moods and address any signs of stress or anxiety. Consider providing enrichment activities, such as puzzle toys or treat-dispensing toys, to keep them mentally stimulated. Ensure that your pet feels safe and secure in their surroundings.

Positive Reinforcement Training:

Training your pet using positive reinforcement techniques fosters a healthy and respectful relationship. Reward-based training methods, such as treats, praise, and play, encourage desired behaviors and help establish clear communication. Avoid using punishment or physical force,which can cause fear and damage the trust between you and your pet. Be patient, consistent, and understanding during training sessions, and celebrate small victories. Enroll in obedience classes or seek guidance from professional trainers if needed. Training not only teaches your pet good manners but also strengthens the bond between you and enhances their overall well-being.

Veterinary Care and Preventive Measures:

Regular veterinary care is essential for your pet's health. Schedule annual check-ups to monitor their overall well-being, receive necessary vaccinations, and detect any potential health issues early on. Stay updated with preventive measures such as flea and tick treatments, heartworm prevention, and regular deworming. Spaying or neutering your pet is also crucial to prevent unwanted litters and certain health issues. Discuss with your veterinarian any specific concerns you may have regarding your pet's health or behavior.

Socialization and Interaction:

Pets, especially dogs, thrive on social interaction with both humans and other animals. Expose your pet to various environments, people, and animals from an early age to promote socialization skills and prevent fear or aggression. Arrange playdates with other friendly and vaccinated pets, visit dog parks (if suitable), or join pet-friendly community events. Regular socialization opportunities help your pet develop confidence, reduce anxiety, and build positive relationships.

Mindful Travel and Boarding:

When traveling or leaving your pet in someone else's care, take necessary precautions to ensure their safety and well-being. Research pet-friendly accommodations or boarding facilities that prioritize gentle care and provide a comfortable environment. Prepare a travel kit with their essentials, including food, water, bedding, toys, and any necessary medications. Consider microchipping your pet and ensuring their identification tags are up to date in case they get lost. Provide clear instructions to caregivers about your pet's routine, preferences, and any special needs.

Conclusion:

Gentle pet care encompasses nurturing, understanding, and meeting the physical, emotional, and social needs of our beloved companions. By incorporating these practices into your daily routine, you can create a harmonious and fulfilling bond with your pet while ensuring their well-being. Remember, pets bring immeasurable joy into our lives, and it is our responsibility to reciprocate that love and care through gentle pet care practices. Your furry friend will thrive, and the rewards of a happy and healthy pet will enrich both your lives.

Cannabis genetics play a crucial role in determining the unique characteristics and effects of different cannabis strains. As the cannabis industry continues to grow, it has become increasingly important for both medical and recreational users to understand the genetics behind the plants they consume. In this comprehensive guide, we will delve into the world of cannabis genetics and explore some of the best strains available today. From legendary classics to innovative hybrids, these strains showcase the diversity and potential of cannabis genetics.

Understanding Cannabis Genetics:

Cannabis genetics refer to the specific combination of genes that determine the plant's traits, such as growth patterns, cannabinoid profiles, aroma, and flavor. Cannabis is typically classified into three main subspecies: Cannabis sativa, Cannabis indica, and Cannabis ruderalis. Each subspecies has unique characteristics and is often bred together to create hybrid strains that offer a combination of desirable traits.

Classic Strains:

Northern Lights: One of the most iconic strains, Northern Lights is renowned for its potent relaxation and euphoric effects. It originated from the Afghani and Thai landrace strains, resulting in a well-balanced hybrid that offers a soothing body high and a clear-headed mental experience.

Skunk #1: Skunk #1 is a legendary strain that has paved the way for countless hybrid varieties. Known for its pungent aroma and powerful cerebral effects, Skunk #1 is a genetic cross of Afghani, Acapulco Gold, and Colombian Gold. It offers a stimulating high combined with a relaxing body buzz.

Haze: Haze strains are revered for their energetic and creative effects. These sativa-dominant hybrids often feature a combination of South American, Thai, and Indian landrace genetics. Haze strains are cherished for their uplifting properties, making them popular among artists, musicians, and those seeking a boost of motivation.

High-CBD Strains:

CBD-rich strains have gained significant popularity in recent years due to their potential therapeutic benefits without the psychoactive effects associated with THC. king seeds Some notable high-CBD strains include:

Charlotte's Web: Developed specifically for its high CBD content, Charlotte's Web gained international attention as a treatment for epilepsy. It contains minimal THC and offers a gentle, calming effect alongside potential therapeutic properties.

ACDC: ACDC is a sativa-dominant strain known for its remarkably high CBD to THC ratio. It provides a relaxed and clear-headed experience, making it suitable for daytime use. ACDC has gained recognition for its potential analgesic and anti-inflammatory effects.

Hybrid Innovations:

Hybrid strains have opened up a world of possibilities by combining the best traits of different subspecies. Here are some noteworthy hybrid innovations:

Girl Scout Cookies (GSC): GSC is a popular hybrid that blends Durban Poison and OG Kush genetics. It offers a sweet and earthy flavor profile along with potent euphoric and relaxing effects. GSC has inspired a range of "Cookie" strains that continue to captivate cannabis enthusiasts.

Gorilla Glue #4: Known for its sticky resin production, Gorilla Glue #4 is a cross between Chem's Sister, Sour Dubb, and Chocolate Diesel. It delivers heavy-hitting euphoria and relaxation, making it a favorite among experienced users seeking powerful effects.

Landrace Strains:

Landrace strains are cannabis varieties that have developed naturally in specific regions, adapting to the local environment over time. These strains often possess unique characteristics and provide a glimpse into the plant's origins. Some notable landrace strains include:

Afghani: Originating from the Hindu Kush mountain range, Afghani is a pure indica strain with a reputation for its relaxing and sedating properties. It serves as a foundation for many popular indica-dominant hybrids.

Durban Poison: Hailing from South Africa, Durban Poison is a pure sativa strain renowned for its uplifting and energizing effects. It offers a sweet and spicy aroma and is highly regarded among connoisseurs for its cerebral stimulation.

Conclusion:

Understanding cannabis genetics is essential for both growers and consumers who seek specific effects and flavors from their cannabis strains. From classic strains that have stood the test of time to innovative hybrids and CBD-rich cultivars, the world of cannabis genetics offers a diverse range of options to suit every preference. By exploring the genetic makeup of different strains, users can make informed choices and find the cannabis genetics that align with their desired experiences and therapeutic needs.

Stilnox, also known as zolpidem, is a sedative-hypnotic medication commonly prescribed to treat insomnia. It belongs to a class of drugs called nonbenzodiazepine hypnotics and works by acting on the central nervous system to induce sleep. In recent years, the option to purchase medications online has become increasingly popular. This guide aims to provide a comprehensive overview of Stilnox, including its uses, dosage, potential side effects, precautions, and the considerations one should keep in mind when purchasing it online.

Understanding Stilnox:

Stilnox is primarily prescribed to treat short-term insomnia. It helps individuals fall asleep faster and stay asleep longer by increasing the activity of a neurotransmitter called gamma-aminobutyric acid (GABA) in the brain. The medication is available in both immediate-release and extended-release formulations, with the latter intended for individuals who have trouble staying asleep throughout the night.

Recommended Dosage:

The dosage of Stilnox varies depending on factors such as age, overall health, and the severity of insomnia. For adults, the typical starting dose is 5-10 mg, taken right before bedtime. Elderly individuals or those with hepatic impairment are often prescribed a lower dosage due to potential adverse effects. It is crucial to follow the prescribed dosage and not exceed it without consulting a healthcare professional.

Potential Side Effects:

Like any medication, Stilnox may cause side effects. The most common ones include drowsiness, dizziness, headache, and a bitter or metallic taste in the mouth. Some individuals may also experience memory problems, impaired coordination, or confusion. It is important to be aware of these side effects and report any persistent or severe symptoms to a healthcare provider.

Precautions and Contraindications:

Certain precautions should be taken before using Stilnox. Individuals with a history of drug or alcohol abuse, liver or kidney disease, respiratory disorders, or depression should inform their healthcare provider before starting the medication. Stilnox should be used with caution in pregnant or breastfeeding women, as its effects on the fetus or infant are not well-established. Moreover, the medication should not be taken concurrently with alcohol or other central nervous system depressants, as it can lead to increased sedation and respiratory depression.

Buying Stilnox Online:

Purchasing Stilnox online can be a convenient option, but it is essential to exercise caution to ensure safety and legality. Here are some considerations to keep in mind:

Choose a reputable online pharmacy: Look for a licensed and accredited online pharmacy that requires a valid prescription for Stilnox. Avoid purchasing from websites that do not ask for a prescription, as it may indicate illegitimate sources or counterfeit products.

Verify authenticity and quality: Check if the online pharmacy sells genuine Stilnox manufactured by reputable pharmaceutical companies. Look for customer reviews and feedback regarding the pharmacy's products and services.

Secure and private transactions: Ensure that the online pharmacy uses secure payment methods to protect your financial information. Look for encryption and privacy policies to safeguard your personal data.

Legal considerations: Familiarize yourself with the laws and regulations regarding online medication purchases in your country. Importing prescription medications from overseas may be prohibited or subject to specific requirements.

Consult your healthcare provider: Before purchasing Stilnox online, consult your healthcare provider to discuss your insomnia symptoms, determine the appropriate dosage, and obtain a valid prescription.

Risks of Buying Stilnox Online:
While purchasing Stilnox online offers convenience, there are inherent risks involved. Some potential risks include:

Counterfeit or substandard buy mogadon online products: Illegitimate online pharmacies may sell counterfeit or substandard Stil nox products, which can be ineffective or even harmful to your health. These products may not contain the correct active ingredients or may be contaminated with potentially dangerous substances.

Compromised personal information: Online transactions involve sharing personal and financial information. If you choose an untrustworthy or insecure website, there is a risk of your data being compromised or misused. It is crucial to ensure the online pharmacy has robust security measures in place to protect your information.

Legal consequences: Purchasing prescription medication without a valid prescription or from unauthorized sources may have legal consequences. It is essential to comply with local laws and regulations regarding the purchase of Stilnox.

Safeguarding Your Online Purchase:

To minimize the risks associated with buying Stilnox online, consider the following steps:
Research reputable online pharmacies: Take the time to research and verify the credibility of the online pharmacy before making a purchase. Look for certifications, licenses, and customer reviews.

Consult your healthcare provider: Always consult your healthcare provider before purchasing Stilnox online. They can guide you on the appropriate dosage and provide a valid prescription. Additionally, they may be able to recommend reliable online pharmacies.

Look for secure websites: Ensure that the online pharmacy website has secure features such as SSL encryption. Look for the lock symbol in the browser address bar, indicating a secure connection.

Check for contact information: Legitimate online pharmacies should provide clear contact information, including a physical address and a working telephone number. Avoid websites that only offer email communication or have vague contact details.

Verify medication packaging: When your Stilnox order arrives, carefully examine the packaging for any signs of tampering or damage. Check the medication's appearance, such as color, shape, and markings, to ensure it matches the authentic product.

Monitor your experience: Pay attention to the effectiveness and potential side effects of the purchased Stilnox. If you notice any significant differences from your previous experiences or suspect counterfeit or substandard quality, consult your healthcare provider immediately.

Conclusion:

Stilnox, a widely prescribed medication for insomnia, can be conveniently purchased online. However, it is essential to exercise caution and ensure the authenticity, quality, and legality of the medication. Choose reputable online pharmacies, consult your healthcare provider, and prioritize your safety and privacy throughout the process. By following the guidelines provided in this comprehensive guide, you can make informed decisions when purchasing Stilnox online and mitigate potential risks. Remember, your health and well-being should always be the top priority.

Nitrazepam is a widely used medication primarily prescribed for the short-term treatment of insomnia and anxiety disorders. While obtaining medications from local pharmacies is the conventional approach, many individuals now prefer the convenience and cost-effectiveness of purchasing them online. This guide aims to provide valuable insights into buying nitrazepam online at affordable prices, ensuring safety, legality, and the best possible deals.

Understanding Nitrazepam:

Before delving into the process of buying nitrazepam online, it is essential to understand the medication itself. Nitrazepam belongs to the benzodiazepine class of drugs, known for their sedative and hypnotic properties. It acts by enhancing the effects of a neurotransmitter called gamma-aminobutyric acid (GABA) in the brain, thereby promoting relaxation and inducing sleep. Nitrazepam is available under various brand names and comes in different strengths.

Research and Legitimacy:

When buying nitrazepam online, the first step is to conduct thorough research to ensure the legitimacy and credibility of the platforms you consider. Look for online pharmacies that are licensed and reputable, preferably with positive reviews from previous customers. Verify their credentials, such as certification from regulatory authorities like the Food and Drug Administration (FDA) or equivalent organizations in your country.

Prescription Requirements:

Nitrazepam is a prescription-only medication in most countries, which means you will need a valid prescription from a healthcare professional to purchase it legally. Avoid websites that offer nitrazepam without requesting a prescription, as they may be engaging in illegal practices or selling counterfeit products. Online platforms that prioritize safety and compliance will typically ask for a prescription before allowing you to make a purchase.

Comparing Prices:

One of the significant advantages of buying nitrazepam online is the ability to compare prices across different platforms. Take advantage of this opportunity to find the most affordable option without compromising on quality and safety. Keep in mind that extremely low prices can be a red flag for counterfeit or substandard products, so exercise caution. Consider both the medication's cost and any additional fees, such as shipping or consultation charges.

International vs. Domestic Purchases:

Another aspect to consider is whether to opt for international or domestic online pharmacies. International pharmacies may offer lower prices due to variations in drug regulations and manufacturing costs. However, be aware of potential delays in shipping and customs regulations when ordering from abroad. Domestic purchases may provide faster delivery times and easier communication if any issues arise.

Security and Privacy:

Ensure that the online pharmacy you choose prioritizes security and privacy. Look for platforms that use encryption technology to protect your personal and financial information during transactions. Check their privacy policy to understand how they handle and store your data. Reputable online pharmacies will prioritize the confidentiality of your information and provide secure payment options.

Quality Assurance:

Purchasing medications online requires careful consideration of quality assurance measures. Look for online pharmacies that source their products from reputable manufacturers. Genuine nitrazepam should have proper packaging, clear labeling, and identifiable batch or lot numbers. Additionally, ensure that the online pharmacy follows good storage practices to maintain the medication's efficacy and safety during transit.

Customer Support:

Reliable customer support is crucial when buying nitrazepam online. A reputable online pharmacy should have accessible customer service channels, such as email, phone, or live chat, to address any concerns or queries you may have. Prompt and knowledgeable responses from customer support representatives can provide reassurance and help you make informed decisions.

Shipping and Delivery:

Consider the shipping and delivery options offered by online pharmacies. Reliable platforms will have secure packaging to protect the medication during transit and provide tracking information to monitor the delivery process. Some online pharmacies may offer free or discounted shipping options based on order value or location. It is advisable to choose a shipping method that ensures the timely and safe arrival of your nitrazepam while considering any additional costs involved.

Return and Refund Policies:

Review the return and refund policies of the online pharmacy before making a purchase. Reliable platforms often have clear guidelines on returns and refunds in case of damaged or incorrect products. Familiarize yourself with the process and any associated costs, such as shipping fees for returns. A reputable online pharmacy will prioritize customer satisfaction and address any issues promptly and professionally.

Online Reviews and Recommendations:

Before finalizing your decision, take the time to read online reviews and recommendations from other customers. Look for platforms with positive feedback regarding product quality, customer service, and overall user experience. Be cautious of suspiciously positive or overly negative reviews, as they may be biased or fake. Multiple reliable sources of feedback can help you gauge the reputation and reliability of the online pharmacy.

Legal Considerations:

Ensure that purchasing nitrazepam online is legal in your country or region. The regulations surrounding online medication sales can buy didrex online vary, so it is essential to be well-informed. In some cases, import restrictions or customs regulations may apply, and it is crucial to comply with any legal requirements. Familiarize yourself with the specific laws governing online purchases of medications in your jurisdiction to avoid any potential legal issues.

Consultation with a Healthcare Professional:

While this guide provides insights into buying nitrazepam online, it is important to emphasize the significance of consulting with a healthcare professional. Nitrazepam is a potent medication that should be used under medical supervision. Discuss your condition, symptoms, and treatment options with a qualified healthcare provider who can provide appropriate guidance and prescribe the medication if necessary.

Risks and Precautions:

Before using nitrazepam, it is important to be aware of potential risks and precautions associated with its use. Nitrazepam can cause drowsiness, dizziness, and impaired coordination. It may also have interactions with other medications or substances, so it is crucial to disclose your complete medical history and current medications to your healthcare provider. Follow the prescribed dosage and duration, and avoid alcohol and activities requiring alertness until you understand how nitrazepam affects you.

Conclusion:

Buying nitrazepam online at affordable prices can be a convenient and cost-effective option when done responsibly. Prioritize safety, legality, and quality assurance by researching reputable online pharmacies, ensuring prescription requirements are met, and comparing prices and services. Remember to prioritize your health and consult with a healthcare professional for appropriate guidance and supervision throughout your treatment. With thorough research and careful considerations, you can find a reliable online source for nitrazepam that offers both affordability and quality.

A financial market refers to a marketplace where various kinds of financial securities such as stocks, bonds, commodities, etc. are traded. The term ‘market’ can also refer to exchanges that are legal organizations that facilitate the trade of financial securities between buyers and sellers. In any case, these markets are categorized based of the type of financial securities that are traded through them. One such financial market is the Derivatives Market.

Derivatives market thus refers to the financial marketplace where derivative instruments such as futures, forwards and options contracts are traded between counterparties.

It was during the 1980s and 1990s that the financial markets saw a major growth in the trade of derivatives. A derivative is a financial instrument whose value is derived from the value of an underlying asset such as stocks, bonds, currencies, commodities, interest rates and/or different market indices. These underlying assets have fluctuating prices and returns, and derivatives provides a means to investors to reduce the risk exposure and leverage profits on these assets. Thus, derivatives are an essential class of financial instruments and central to the modern financial markets providing not just economic benefits but also resilience against risks. The most common derivatives include futures, forwards, options and swap contracts.

As per the European Securities and Markets Authority (ESMA), derivatives market has grown impressively (around 24 percent per year in the last decade) into a truly global market with over €680 trillion of notional amount outstanding. The interest rate derivatives (IRDs) accounted for 82% of the total notional amount outstanding followed by currency derivatives at 11%.

Main types of derivative contracts
Derivatives derive their value from an underlying asset, or simply an ‘underlying’. There is a wide range of financial instruments that can be an underlying for a derivative such as equities or equity index, fixed-income instruments, foreign currencies, commodities, and even other securities. And thus, depending on the underlying, derivative contracts can derive their values from corresponding equity prices, interest rates, foreign exchange rates, prices of commodities and probable credit events. The most common types of derivative contracts are elucidated below:

Forwards and Futures
Forward and futures contracts share a similar feature: they are an agreement between two parties to buy or sell a specified quantity of an underlying asset at a specified price (or ‘exercise price’) on a predetermined date in the future (or ‘expiration date’). While forwards are customized contracts i.e., they can be tailor-made according to the asset being traded, expiry date and price, and traded Over-the-Counter (OTC), futures are standardized contracts traded on centralized exchanges. The party that buys the underlying is said to be taking a long position while the party that sells the asset takes a short position and both parties are obligated to fulfil their part of the contract.

Options
An option contract is a financial derivative that gives its holder the right (but not the obligation) to trade an underlying asset at a price set in advance irrespective of the market price at maturity. When an option is bought, its holder pays a fixed amount to the option writer as cost for this flexibility of trading that the option provides, known as the premium. Options can be of the types: call (right to buy) or put (right to sell).

Swaps
Swaps are agreements between two counterparties to exchange a series of cash payments for a stated period of time. The periodic payments charged can be based on fixed or floating interest rates, depending on contract terms decided by the counterparties. The calculation of these payments is based on an agreed-upon amount, called the notional principal amount (or just notional).

Exchange-traded vs Over-the-counter Derivatives Market
Exchange-traded derivatives markets
Exchange-traded derivatives markets are standardized markets for derivatives trading and follows rules set by the exchange. For instance, the exchange sets the expiry date of the derivatives, the lot-size, underlying securities on which derivatives can be created, settlement process etc. The exchange also performs the clearing and settlement of trades and provide credit guarantee by acting as a counterparty for every trade of derivatives. Thus, exchanges provide a transparent and systematic course of action for any derivatives trade.

Over-the-counter markets
Over-the-counter (also known as “OTC”) derivatives markets on the other hand, provide a lesser degree of regulations. They were almost entirely unregulated before the financial Produits dérivés bd crisis of 2007-2008 (also a time when derivatives markets were criticized, and the blame was placed on Credit Default Swaps). OTCs are customized markets and run by dealers who hedge risks by indulging in derivatives trading.

Types of market participants
The participants in the derivative markets can be categorized into different groups namely,

Hedgers
Hedging is a risk-neutralizing strategy when an investor seeks to protect a current or anticipated position in the market by limiting their risk exposure. They can do so by taking up an offset or counter position through derivative contracts. Parties such as individuals or companies who perform hedging are called Hedgers. The hedger thus aims to eliminate volatility against fluctuating prices of underlying securities and protect herself/himself from any downsides.

Speculators
Speculation is a very common technique used by traders and investors in the derivatives market. It is based on when traders have a strong viewpoint regarding the market behavior of any underlying security and though it is risky, if the viewpoint is correct, the speculation may reward with attractive payoffs. Thus, speculators use derivative contracts with a view to make profit from the subsequent price movements. They do not have any risk to hedge, in fact, they operate at a relatively high-risk level in anticipation of profits and provide liquidity in the market.

Arbitrageurs
Arbitrage is a strategy in which the participant (or arbitrageur) aims to make profits from the price differences which arise in the investments made in the financial markets as a result of mispricing. Arbitrageurs aim to earn low risk profits by taking two different positions in the same or different contracts (across different time periods) or on different exchanges to in-cash on price discrepancies or market inefficiencies.

Margin Traders
Margin is essentially the collateral amount deposited by an investor investing in a financial instrument to the counterparty in order to cover for the credit risk associated with the investment. In margin trading, the trader or investor is not required to pay the total value of your position upfront. Instead, they only need pay the margin amount which may vary and are usually fixed by the stock exchanges considering factors like volatility. Thus, margin traders buy and sell securities over a single session and square off their position on the same day, making a quick payoff if their speculations are right.

Criticism of derivatives
While derivatives provide numerous benefits and have significantly impacted modern finance and markets, they pose many risks too. In a 2002 letter to Berkshire Hathaway shareholders, Warren Buffet even described derivatives as “financial weapons of mass destruction”.

Derivatives are more highly leveraged due to relatively relaxed regulations surrounding them, and where one may need to put up half the money or more with buying other securities, derivatives traders can get by with just putting up a few percentage points of the total value of a derivatives contract as a margin. If the price of the underlying asset keeps falling, covering the margin account can lead to enormous losses. Derivatives are thus often criticized as they may allow investors to obtain unsustainable positions that elevates systematic risk so much that it can be equated to legalized gambling. Derivatives are also exposed to counterparty credit risk wherein there is scope of default on the contract by any of the parties involved in the contract. The risk becomes even greater while trading on OTC markets which are less regulated.

Derivatives have been associated with a number of high-profile credit events over the past two decades. For instance, in the early 1990s, Procter and Gamble Corporation lost more than $100 million in transactions in equity swaps. In 1995, Barings collapsed when one of its traders lost $1.4 billion (more than twice its then capital) in trading equity index derivatives.

The amounts involved with derivatives-related corporate financial distresses in the 2000s increased even more. Two such events were the bankruptcy of Enron Corporation in 2001 and the near collapse of AIG in 2008. The point of commonality among these events was the role of OTC derivative trades. Being an AAA-rated company, AIG was being exempted from posting collateral on most of its derivatives trading in 2008. In addition, AIG was unique among CDS market participants and acted almost exclusively as credit protection seller. When the global financial crisis reached its peak in late 2008, AIG’s CDS portfolios recorded substantial mark-to-market losses. Consequently, the company was asked to post $40 billion worth of collateral and the US government had to introduce a $150 billion financial package to prevent AIG, once the world’s largest insurer by market value, from filing for bankruptcy.

Conclusion
Derivatives were essentially created in response to some fundamental changes in the global financial system. If correctly handled, they help improve the resilience of the system, hedge market risks and bring economic benefits to the users. Thus, they are expected to grow further with financial globalization. However, past credit events have exposed many weaknesses in the organization of their trading. The aim is to minimize the risks associated with such trades while enjoying the benefits they bring to the financial system. An important challenge is to design new rules and regulations to mitigate the risks and to promote transparency by improving the quality and quantity of statistics on derivatives markets.