if the inherent leverage of derivatives is what causes increased volatility why is it that deriv

Name: if the inherent leverage of derivatives is what causes increased volatility why is it that derivative exchanges do not choose the easy route of increasing margins to reduce volatility 45967
Uploaded: 2023-10-10T10:02:48-08:00
Duration: 3 min 14 s
Channel: Supreeta N
Description: if the inherent leverage of derivatives is what causes increased volatility why is it that derivative exchanges do not choose the easy route of increasing margins to reduce volatility 45967

Question

Supreeta N · Accepted Answer

Step 1: Derivatives are financial instruments that derive their value from an underlying asset o

Question

If the inherent leverage of derivatives is what causes increased volatility, why is it that derivative exchanges do not choose the easy route of increasing margins to reduce volatility ?

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