Functioning of derivatives · 01. April 2023

Reverse convertibles sound complex but think of them as a two-in-one deal. You get higher interest, but there's a stock bet involved. If the stock stays steady or rises, you enjoy the interest. However, if it drops significantly, you could end up owning that stock instead. You can add a safety layer, called 'hedging', to protect your investment. But remember, while you can earn decent returns, you might miss out on big stock gains. #InvestmentBasics #ReverseConvertible #FinanceTips