Risk-on & Risk-off

The global financial crisis is one of the biggest issues that creates lot of problems since last few years. This disaster has touched virtually every country. Reduced profits, loss of jobs, rising prices, delayed wages, stipends, pensions and unemployment. The investors lost huge sums of money due to financial crisis and lack of risk management measures.

The Economic Crisis was mainly fueled by the use of Derivatives including options, futures, and warrants). They are a mirror reflection of the underlying assets like main stocks and bonds. People started selling securities and derivatives regularly, which triggered panic and crisis situation. ...