Derivatives market behaviour, risk exposure and awareness among students on derivative industry

Over the years, companies have been using derivatives to hedge their position, financially as business entities. Derivatives do play an increasingly important role over the years as effective tool or mechanism in managing the potential risks of interest rates, currency exchange rates and equally important, equity markets. The main purpose of this particular study is to examine the level of exposure on Derivatives industry among students. This paper also on the other side, aims to highlight on the role of derivatives in market and to give the readers an understanding of this market. The study is based on secondary data with the application of quantitative analysis. It must be mentioned that key findings suggest that future research work in this particular area of interest should clearly define the importance of knowledge to be seeded from the students level itself. The ability to clearly define the root cause will provide the avenue of a more structured and systematic investment method which in return will be the ability to identify the risk and manage the risk effectively to have a high return. The purpose of this paper is as well to provide an insight to students on what derivatives is. Based on my paper, in depth research can be conducted with more various categories to provide a tare research analysis. On another note, this paper aims to provide an insight in respect of Derivatives markets, the risk exposure and the awareness on Global Banking Markets among students. As highlighted earlier in the problem statement, there is a lack of knowledge and exposure among Malaysians in particular with regards to the Derivatives industry in utilizing more of the derivatives market. Thus, it is important and considered timely for such a study to be conducted specifically at the student level first to understand where is the knowledge gap is obvious.