Methods of decline of risks Abstract: hedging, insurance, diversification.

Abstract

This article presents the vision of the novice investor in the market of
urgent financial instruments, hedging, insurance, diversification. Analysis
of derivatives for Kazakhstan stock exchange KASE is presented at theoretical
level. The positive and negative aspects of the stock market , futures
and options contracts are identified.
Financial risks can be linked with for example sales of products, the
depreciation of capital invested in assets, purchase of assets , etc.
For this purpose, the derivative financial instruments (hedging instruments)
were invented and an operation to reduce risk with these derivatives
is called hedging.
Long considered the position and Short on contracts in the case of raising
and lowering the price of the underlying asset. Presented an example
on earning and price divergence actually identical instruments. The notions
of hedging, insurance, diversification.