Structured Products and Derivatives

These versatile risk management tools respond to moves in underlying asset prices. Structured products team traditional investments such as stocks with more complex elements, such as futures and options. Structured products have the potential to minimize risk by reducing the effects of market volatility. Pure derivatives allow investors to assume highly leveraged positions, offering the possibility of achieving high returns from modest asset price movements (of course, the possibility of higher returns implies that higher risk is also involved). Here is a selection of the most widely-used of these investment vehicles.