Marketplace®

Daily business news and economic stories

A derivatives product is… what exactly?

This final note today — on the theory that news of business and the economy can be dense, an explainer. Interviewer: So what exactly is a d…

This final note today — on the theory that news of business and the economy can be dense, an explainer.


Interviewer: So what exactly is a derivatives product?

Trader: Derivative products are a lot about leverage.

Interviewer: Got it. So what is leverage exactly?

Trader: A lot of leverage is about maximizing your margins.

Interviewer: OK, so how would you define “margins?”

Trader: Yeah, margins really come into play when talking about derivatives.

Interviewer: OK, so what is a derivatives product?

Trader: They’re kind of like stocks.

Interviewer: For our listeners who aren’t well versed in finance, what are stocks?

Trader: They fluctuate. Stocks definitely fluctuate.

Interviewer: What does that mean exactly?

Trader: It means that the market is cyclical.

Interviewer: And by “the market” you mean…

Trader: Buy low, sell high.

Interviewer: I’m sorry, what?

Trader: Supply and demand.

Interviewer: Excuse me?

Trader: Nature versus nurture.

Interviewer: Nature versus…

Trader: Mi casa es su casa.

Interviewer: What?

Trader: Mi casa… es… su casa.

Interviewer: You don’t even know what derivatives are, do you?


Maybe. Maybe not. Our skit was written by Insanitas Comedy. Michelle Philippe and Jonathan Karp brought it to life.

Related Topics

Collections:

Latest Episodes

View All Shows
  • Make Me Smart
    2 days ago
    26:01
  • Marketplace
    2 days ago
    25:42
  • Marketplace Morning Report
    2 days ago
    6:54
  • Marketplace Tech
    2 days ago
    8:03
  • Million Bazillion
    5 days ago
    28:24
  • How We Survive
    9 days ago
    25:04
  • This Is Uncomfortable
    9 days ago
    26:12
  • Financially Inclined
    3 months ago
    12:30
  • The Uncertain Hour
    4 months ago
    22:50
  • Corner Office from Marketplace
    5 years ago
    20:58