Speculative trading of financial derivatives - the cause of instability in the financial markets

摘要

In the last few years, companies and institutions are increasingly using derivative instruments in order to actively manage risks of their business. The large usage of various derivatives has led to an increase in trading with derivatives on financial markets. The aim of this paper is to present derivative instruments, according to the certain risks and the volume of trading due to certain groups of derivatives. The results of analysis indicate that the huge volume of trading with financial derivatives is connected with speculative trading. As a consequence of speculative trading with derivatives, the derivatives have no more real cover and these transactions change the money supply provided from the central banks in reality.