Recalling a chapter from Traders Guns and money Beautiful lies on sale side how derivatives are misinterpreted or mis-sold, It’s very simple trying to figure out the hierarchy of the trading floor. There are Sales people – they lie to clients. Traders lie to sales and to risk managers. Risk managers ? they lie to people who run the place – a small correction they think they run the place. The people who run the place lie to shareholders and regulators 🙂

The last post that I did Derivatives derivatives soooo many, resembles outstanding derivatives with the top 5 banks of the world, here is some basic background for my non financial market friends about derivatives. Continue reading