What Is a Derivative?
A derivative is a contract between two or more entities, and the value of a derivative is based on another asset. Common derivatives include futures, options, and swaps. A derivative is useful to mitigate your risk, or to take on additional risk with the potential to earn additional payout.
- What Are Some of the Benefits of Investing in Mortgages?
- Can I Make Money from Other People's Mortgages?
- What Is Fractional Ownership?
- What Does It Mean to Bundle Mortgages?
- What Is Leveraging?
- How Can I Leverage Other People's Money to Buy More Properties?
- What Are the Risks of Investing in Mortgages?
- What Are Tranches?