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Derivatives trading spikes as investors embrace risk in volatile markets
Retail traders more likely to incur losses due to lack of experience or understanding
Claudia Tan HS
Published Fri, Jul 10, 2020 · 09:50 PM
Singapore
BROKERAGES are seeing a surge in the use of derivatives in uncertain times - a trend that they say reflects a lift in sophistication of retail investors here. But the risks of losses on these products are also higher, and the products are sometimes not well understood.
Derivatives markets have historically proven useful for generating gains in economic downturns, especially as investors can take advantage of leverage to boost returns.
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