Value Strategies in Trading Derivatives: Theories and Practice in Forwards, Futures and Options

Abstract

Investors can use different kinds of investment strategies when making derivative investments. Although China has a large number of investors, Chinese derivatives market is still a developing market, there are many different kinds of trading strategies that are worth considering whether they can fit in this developing market. Based on value investment style, this paper applies different kinds of strategies to currencies, commodities and options respectively, and for each asset, this paper did research on their discretionary trading models, systematic trading models and advanced models respectively. Through measuring the return from the back test of each investment strategy, this paper made investment conclusion and gave recommendations on Chinese derivatives market. CCS Concepts: Social and professional topics-Professional topics-Computing and business-Economic impact