Welcome to the advanced course on derivatives trading! In this lesson, we will recap the essential concepts covered in the beginner's course and set the stage for our deeper exploration of derivatives trading strategies using Deriv's platforms.
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Understanding Derivatives

Derivatives are financial contracts where the value is linked to the performance of an underlying asset. These underlying assets can range from:

• Derived Indices: Unique synthetic assets available on the Deriv platform.
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• Traditional Stock Indices: Such as the S&P 500 or FTSE 100.
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• Digital Currencies: Including cryptocurrencies like Bitcoin.

When trading derivatives, you are not buying the asset itself. Instead, you are speculating on how its value will change over time, which allows for flexible trading strategies and potential profit opportunities.
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Types of Derivatives Offered by Deriv

Let’s revisit the key derivative contract types you can trade on Deriv:

1. Vanilla Options:
   
   • These options allow you to predict whether the price of an asset will rise or fall within a specified timeframe. Profits can be unlimited, depending on how significantly the price moves in your favour, while losses are limited to the initial stake.
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2. Accumulators:
   
   • Accumulators function similarly to compound interest, where your returns grow over time if the asset's price remains within a designated range. This type incentivizes consistent, stable market conditions, rewarding longer hold periods.
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3. Turbos:
   
   • Turbos resemble standard trades but add a barrier level. If the asset price touches the set barrier, the trade closes automatically. You receive a payout at expiration if the barrier is not breached, offering an exciting twist on standard options.
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4. Multipliers:
   
   • These contracts amplify your returns during favourable market movements. The risk is capped at your initial investment, allowing you to leverage your trades while protecting your capital if the market moves against you.
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5. Digital Options:
   
   • The simplest form of derivative, digital options allow you to answer a yes or no question regarding price movement. If you're correct, you receive a fixed payout; if not, you lose your initial stake, providing clarity and simplicity in trading.
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Options Trading Platforms at Deriv

Deriv offers several options trading platforms tailored to your trading style:

• Deriv Trader: A comprehensive and user-friendly platform for those seeking a hands-on approach with various technical analysis tools.
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• Deriv Bot: An innovative, no-code solution for automating trading strategies using drag-and-drop functionality, making it ideal for traders looking for a consistent execution without the need for extensive coding knowledge.
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• SmartTrader: A versatile platform that allows for a blend of manual and automated trading strategies.
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Course Objectives

In this advanced course, we will:

• Explore Practical Trading Strategies: Delve deeper into each contract type, focusing on techniques that enhance your trading approach using Deriv Trader.
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• Develop a Comprehensive Understanding: Equip you with the skills necessary to employ effective options contract trading strategies tailored to current market conditions.

As we embark on this advanced journey in derivatives trading, remember the importance of practicing your strategies in a risk-free environment before applying them in live trades. Understanding the nuances of different contract types, alongside effective trading strategies, will empower you to navigate the markets confidently.

Thank you for joining this lesson! In our next video, we’ll begin our deep dive into trading strategies tailored to each derivative contract type.