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All About Derivatives Second Edition (All About Series) [Kindle Edition]

Michael Durbin
4.5 out of 5 stars  See all reviews (15 customer reviews)

Print List Price: £12.99
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Book Description


All About Derivatives, Second Edition, presents the complex subject of financial derivatives with a clarity and coherence you won’t find in other books. Using real-world examples and simple language, it lucidly illustrates what derivatives are and why they are so powerful. This second edition of All About Derivatives provides a rock-solid foundation on:

  • The most common contracts available to you in today's market
  • Key concepts such as cost of carry, settlement, valuation, and payoff
  • Proven methods for establishing fair value
  • How leverage can work for you--and against you
  • The various derivative contracts traded today, including forwards, futures, swaps, and options
  • Pricing methods and mathematics for determining fair value
  • Hedging strategies for managing and reducing different types of risk


Product Description

From the Back Cover

Everything you need to know about derivatives--what they are, how they work, and how they can enhance profits and control market risk

Financial derivatives, from standard put and call options to more complex strategies and combinations, are among the most versatile, powerful, and valuable tools available to investors. All About Derivatives introduces you to the many different types of derivatives, providing simple explanations and easy-to-follow methods for using each.

This straightforward, up-to-date examination covers all aspects of derivative contracts, explains techniques for pricing and trading them, shows how to use each to hedge risk or increase profits, and more. Avoiding complicated formulas and theories to focus on the information you need, it shows anyone--from individual investors to corporate risk managers--how derivatives work, how they fit into the larger world of investing, and why they can be the ideal trading vehicle for improving the financial performance of yourself or your organization.

Whatever your level of investing expertise, from beginner to veteran, All About Derivatives will give you the information you need to know:

  • Contracts--forwards, futures, swaps, options, and credit derivatives
  • Terms--volatility, arbitrage, the greeks, and many more
  • Key mechanics--storage, settlement, valuation, and payoff
  • Pricing methods and mathematics for determining fair value
  • Hedging strategies for managing different types of risk
  • Leverage--why it can be your best friend or worst enemy
  • And more

About the Author

Michael Durbin is a writer, educator, and financial technology consultant specializing in high-frequencytrading of financial derivatives. He has taught at Duke University's Fuqua School of Business and the University of North Carolina's Kenan-Flagler Business School and hashelped numerous Wall Street firms develop derivative pricing and trading systems. Durbin lives in Chapel Hill, North Carolina.

Product details

  • Format: Kindle Edition
  • File Size: 3814 KB
  • Print Length: 288 pages
  • Simultaneous Device Usage: Up to 4 simultaneous devices, per publisher limits
  • Publisher: McGraw-Hill; 2 edition (7 Dec. 2010)
  • Sold by: Amazon Media EU S.à r.l.
  • Language: English
  • ASIN: B004E9SYII
  • Text-to-Speech: Enabled
  • X-Ray:
  • Word Wise: Enabled
  • Average Customer Review: 4.5 out of 5 stars  See all reviews (15 customer reviews)
  • Amazon Bestsellers Rank: #195,602 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Customer Reviews

4.5 out of 5 stars
4.5 out of 5 stars
Most Helpful Customer Reviews
7 of 7 people found the following review helpful
4.0 out of 5 stars From the point of view of a software developer... 16 April 2007
I thought this book was a good introduction.

I liked the informal tone, and the simple language especially. The examples used are easy to understand and the same examples tend to get expanded as you sweep through the book. This is a big help as some other books tend to create new examples for each new subsection. Thus making it difficult to see what new variables are being introduced...

As the description says, covers basic Forwards, Futures, Swaps and Options - and for Options, covers BlackScholes and Binomial pricing theory. At no stage does it claim to be a comprehensive reference for these techniques, but thats fine for people like me.

I haven't read a lot of similar books to compare and contrast with this one, but I certainly felt it was worth the money...
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7 of 7 people found the following review helpful
5.0 out of 5 stars Great for fundamentals 10 Sept. 2007
One of the most difficult tasks for a writer of DIY and LIY books is conveying complex processes is easy to understand language. Michael Durbin has successfully acheived this; explaining the fundamentals of derivatives in concise laymens terminology with myriad of analogies and examples. As a business analyst working with both IT and IR derivatives trader, I have found this book to be the best I have read so far. The book provides the reader with a solid platform from which to delve into more complex mathematically-based books such as Hull and Fabozzi. Thoroughly recommended for the derivatives beginner or for those seeking a high level understanding of the complex derivatives world.
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3 of 3 people found the following review helpful
4.0 out of 5 stars A SOPHISTICATED FINANCIAL INSTRUMENT OR...... 21 Mar. 2011
Format:Paperback|Verified Purchase
......a gamble or "taking a view" said by those wishing to obscure Joe Public's perception of derivative trading as a casino activity.

Having read a few accounts of the causes of the recent Credit Crunch, which were littered with references to derivative trading being one of the major causes of the mind blowing frittering away of literally trillions of dollars on what according to the authors amounted to no more or no less than naked speculation, I wanted to know a little more about derivatives. Certainly Michael Durbins book "All About Derivatives - The Easy Way To Get Started", in its early stages introduces the basic derivative trades in an easily understandable way. I now know that a derivative is a price guarantee, and that most derivatives are an agreement between a future possible buyer and a future possible seller and basically fall into four types viz. Forward, Future, Swap and Options Contract each specifying an item known as the underlier, which can or must be sold.

This basic level of understanding was really all I was looking for and as the book went on to put flesh on the carcass, my willingness to learn the intricacies of derivative trading waned and my eyes started to glaze over by the time it got to The Black-Scholes Formula and Contango and Normal Backwardation! It seems to the uninitiated that a whole new dictionary of quasi-technical/scientific jargonese has been cobbled together that has the effect of deterring outsiders from understanding what is going on eg 'A One-Step Binomial Tree', 'Stochastic Volatility', and 'Pseudoequities and Pseudoprobability'.....see what I mean or should I say 'don't see'.
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10 of 11 people found the following review helpful
5.0 out of 5 stars Best book for beginners 14 May 2007
I haven't finished it yet, but this is a brilliant book and you feel that the author is in the room with you when you're reading it. He cuts though all the jargon in an easy and humorous style. The book is very clearly laid out and answers exactly what you need to know (eg. What is a swap? What are futures? How do you price a swap?). It's a fantastic way to build up your business knowledge.

I would really recommend this book to anyone who is new or has a passing knowledge of derivatives. I work in IT in interest rate derivatives and this book is by far the best I've bought. The other one I bought was Andrew Chisholm's 'Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options' which I think isn't as good, so if I had a choice to pick between these two books, I'd definitely go for Durbin.
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3 of 3 people found the following review helpful
5.0 out of 5 stars Excellent introduction 13 Feb. 2006
By A Customer
I can fully recommend this book as an introduction for people that are totally new to the area. The first half is a clear introduction to various types of derivative, while the second half goes into more detail on the pricing of derivatives.
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1 of 1 people found the following review helpful
I simple love this book. The first chapter, 'Derivatives in a Nutshell' simply explains what they are in a very simplified manner, assuming that you have no prior knowledge of derivatives at all. It then progressively walk you through the other chapter going into more and more details about the main four types of derivatives, before finally walking you through all the calculations. What I like the most about this book is how it always uses a good example for explanation right after almost all definition in the book. I tell you you can teach a baby about derivatives using this book. I am a Programmer and coming from that background I was totally new to the financial world. after reading several other books, this was the last ever book I read on derivatives. I still use it as a reference. I highly recommend this book especially for those that are not of a financial background.
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Most Recent Customer Reviews
4.0 out of 5 stars Well written. Very informative.
Well written.
Very informative.
Published 2 months ago by Zoot Alors
5.0 out of 5 stars A must read
Found it extremely useful as a quick reference. The author starts from scratch on most topics which makes understanding derivative products relatively easy for beginners.
Published 2 months ago by Miss S Karthika
4.0 out of 5 stars Four Stars
Good book all you need to know about derivatives
Published 3 months ago by A J Taha
5.0 out of 5 stars Intelligible summary of derivatives
This book gave me all I asked for, easy, comprehensive summary of derivatives, great starting point. Read more
Published 15 months ago by Dan Svoboda
5.0 out of 5 stars Makes derivatives understandable
Really good book, very good explanations and makes something potentially complicated seem easily understandable. Read more
Published 16 months ago by faye hancock
5.0 out of 5 stars Derivatives In A Nutshell
This concise books holds all the basics regarding derivatives, it is well structured and reasonably detailed for a book of this size and price. Read more
Published 23 months ago by Blueglasnost
5.0 out of 5 stars The Best!!!
There can't be a better book in the Market for someone who is trying to understand derivatives and the way they are priced.
A very good book for a cheap price.
Published on 26 Mar. 2012 by Satheesh
3.0 out of 5 stars Useful but with some mistakes that cost time to work through
All round great book, good introduction to derivatives and their uses and basic pricing strategies. However some math is wrong, causing me to work through them multiple times... Read more
Published on 26 Jun. 2011 by Rayner
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