How derivatives function in financial markets

Trading in instrument set to be unveiled at NSE savvy investors to avoid losses. PHOTO | FILE

Financial markets are growing, especially in Kenya. However, the pace of growth is not something to cheer about.

But all the same, growth is growth. Here in Kenya, there have been two recent developments in the financial markets worth noting. The forthcoming futures market and the real estate investment trusts schemes, which provide an alternative to direct investment in traditional mortgage securities.

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Note: The results are not exact but very close to the actual.