The SMOK RPM C is a highly versatile and advanced pod mod system that offers an exceptional vaping experience. Combining power, performance, and portability, this device has become a favorite among vapers worldwide. In this comprehensive guide, we will delve into the various features, functions, and settings of the SMOK RPM C, providing you with the knowledge needed to maximize your vaping experience. Whether you're a beginner or an experienced vaper, this guide will equip you with the necessary information to make the most of this innovative device.

Getting Started with the SMOK RPM C

Unboxing and Contents

Upon unboxing the SMOK RPM C, you will find the main device, a refillable pod cartridge, RPM and NORD coil options, a USB charging cable, and a user manual. Ensure that all the components are included and undamaged before proceeding.

Device Overview
The SMOK RPM C features a compact and ergonomic design, making it comfortable to hold and easy to carry. It has a single fire button and a 0.96-inch color screen for convenient operation and data display. On the side of the device, you'll find a USB port for charging purposes. The pod cartridge is magnetically attached to the device, ensuring a secure connection. The RPM C also boasts a powerful built-in battery that delivers long-lasting vaping sessions.

Operating the SMOK RPM C

Filling the Pod Cartridge

To fill the pod cartridge, remove it from the device by gently pulling it out. Locate the fill port on the side of the pod and lift the rubber plug. Insert the tip of your e-liquid bottle into the fill port and gently squeeze to fill. Once filled, replace the rubber plug and firmly reattach the pod to the device.

Installing and Changing Coils

The SMOK RPM C is compatible with both RPM and NORD coils, offering a wide range of vaping options. To install or change a coil, first, remove the pod from the device. Next, detach the coil by unscrewing it counterclockwise from the bottom of the pod. Take a new coil and prime it by applying a few drops of e-liquid onto the cotton wick. Then, screw the coil firmly into the base of the pod. Reinsert the pod into the device, ensuring a secure fit.

Adjusting Settings and Modes

The SMOK RPM C offers various settings and modes to customize your vaping experience. To access the menu, press the fire button three times rapidly. Use the up and down buttons to navigate through the options and the fire button to confirm your selection. The device allows you to adjust wattage, display colors, and choose between puff-based or SMOK RPM C time-based vaping data. Experiment with different settings to find your preferred vaping style.

Safety and Maintenance

Battery Safety

To ensure safe usage, always follow these battery safety guidelines:

Use the provided USB cable or a reputable charging device.
Avoid exposing the device to extreme temperatures or moisture.
Do not leave the device unattended while charging.
Replace the battery if damaged or if performance deteriorates.

Cleaning and Maintenance

Regular maintenance will prolong the lifespan of your SMOK RPM C. Clean the device and pod connections with a dry cloth to remove any e-liquid residue. Avoid using water or other liquids to clean the device. Additionally, periodically inspect the pod for wear and tear, replacing it if necessary. Keep the device stored in a cool and dry place when not in use.

Conclusion

The SMOK RPM C is a top-of-the-line pod mod system that offers exceptional performance, versatility, and convenience. By following this comprehensive guide, you now have a solid understanding of the device's features, functions, and maintenance requirements. Remember to always prioritize safety when using your RPM C and adhere to the manufacturer's guidelines. Enjoy your vaping journey with the SMOK RPM C, and explore the various options and settings to find the perfect vaping experience for you.

The Dodge Charger is an iconic American muscle car that exudes power, style, and performance. One way to enhance its visual appeal and make a statement on the road is by adding stripes. Dodge Charger stripes come in various styles, colors, and designs, allowing owners to personalize their vehicles to suit their unique tastes. In this comprehensive guide, we will explore the world of Dodge Charger stripes, including the different types, popular designs, installation methods, and maintenance tips.

Types of Dodge Charger Stripes:

There are several types of stripes available for the Dodge Charger, each offering a distinct visual effect. Here are the most common types:

Hood Stripes:

Hood stripes run along the center of the hood from the front grille to the windshield, adding a sporty and aggressive touch.

Roof Stripes:

Roof stripes extend from the front windshield to the rear windshield, enhancing the Charger's aerodynamic look.

Trunk Stripes:

Trunk stripes run along the center of the trunk lid, complementing the overall design of the vehicle.

Side Stripes:

Side stripes run along the sides of the Charger, starting from the front fender and continuing towards the rear fender. They add a sleek and dynamic appearance.

Popular Designs and Colors:

When it comes to Dodge Charger stripes, there are countless design options to choose from. Here are some popular choices:

Classic Dual Racing Stripes:

Inspired by the muscle car heritage, these stripes typically run from the front bumper to the rear bumper, with two parallel lines. They are often seen in contrasting colors like black, white, or silver.

SRT Hellcat Inspired Stripes:

These stripes are influenced by the high-performance Hellcat variant of the Charger. They feature bold designs, aggressive angles, and vibrant colors, instantly grabbing attention.

Retro-style C-Stripes:

Reminiscent of the iconic Chargers of the past, C-stripes start at the front fender and follow the curve of the door, ending near the rear fender. They add a touch of nostalgia and vintage charm.

Custom Designs:

For those seeking a truly unique look, custom-designed stripes offer endless possibilities. From intricate patterns to personalized decals, you can work with a professional to create a design that reflects your individuality.

Installation Methods:

Installing Dodge Charger stripes can be done in different ways, depending on your preferences and skill level. While professional installation is recommended for optimal results, here are two common methods:

Wet Installation:

This method involves applying the stripes using a soapy water solution. It allows for easy repositioning and air bubble removal during the installation process. However, it requires patience and precision to achieve a seamless look.

Dry Installation:

Dry installation involves directly applying the stripes without any liquid solution. It is less forgiving than the wet method, as repositioning or removing air bubbles becomes more challenging. Dry installation is best suited for experienced individuals or professional installers.

Maintenance Tips:

Proper care and maintenance are essential to preserve the appearance and longevity of your Dodge Charger stripes. Consider the following tips:

Regular Cleaning:

Wash your Charger and the stripes regularly using a mild automotive detergent and a soft sponge or microfiber cloth. Avoid abrasive cleaners or brushes that could damage the stripes.

Avoid Harsh Chemicals:

Refrain from using solvents, gasoline, or other harsh chemicals on the stripes, as they can cause discoloration or peeling.

Waxing and Polishing:

Apply a high-quality automotive wax or polish to protect the stripes and maintain their shine. However, avoid waxing immediately after installation to allow the adhesive to fully set.

Parking Considerations:

Whenever possible, park your Dodge Charger in shaded areas or use a car cover to protect the stripes from prolonged exposure to sunlight, which can fade the colors over time.

Be Mindful of Pressure Washing:

While pressure washing can be a convenient way to clean your vehicle, it's important to exercise caution around the stripes. High-pressure water can lift or damage the edges of the stripes. Use a gentle spray or hand wash to clean the area instead.

Avoid Scratching or Abrasion:

Take care when handling objects near the stripes to prevent accidental scratching or abrasion. Be cautious when using car wash brushes or any abrasive materials that may harm the stripes' surface.

Repairing Damaged Stripes:

In the event charger racing stripes of minor damage, such as scratches or small tears, there are touch-up kits available to repair the affected areas. Follow the manufacturer's instructions carefully or consult a professional if needed.

Seeking Professional Assistance:

If you lack experience or confidence in installing Dodge Charger stripes yourself, it is recommended to seek the help of a professional. Professional installers have the expertise and specialized tools to ensure a precise and seamless application, minimizing the risk of damage or misalignment.

Conclusion:

Dodge Charger stripes are an excellent way to enhance the visual appeal of your vehicle and make a bold statement on the road. Whether you opt for classic racing stripes, retro designs, or custom creations, the choices are virtually endless. Remember to consider the different installation methods, maintenance tips, and seek professional assistance when needed to ensure a flawless and long-lasting result. With proper care and attention, your Dodge Charger stripes will continue to turn heads and showcase your unique style for years to come.

Organic protein powder is an excellent way to support your body, regardless of your health and fitness goals. You can add high-quality proteins and organic superfoods like chia seeds to your diet with protein shakes and meal replacement supplements while saving time and providing your body with valuable nutrients.

Join us as we examine organic protein powder, its benefits compared to non-organic protein powders, and key factors to consider when picking an organic protein powder that suits your goals. Please note that it’s best to speak with your healthcare provider before changing your diet, particularly if you have existing health conditions.

Why Organic Protein Powder?
Organic foods are in higher demand today than ever before, and they’re only getting more popular with each passing year. In addition to being better for the environment, organic foods have science-backed health benefits such as:

Fewer pesticides
Fewer heavy metals
More healthy fats
More nutrients
No antibiotics
No synthetic hormones

It should come as no surprise, then, that organic protein powders and supplements are also popular right now. You’re getting the benefits of organic foods alongside the benefits of supporting your body with protein.

Organic Protein Powder vs. Non-Organic Protein Powder
Both organic and non-organic protein powder supplements provide your body with valuable nutrients. For example, protein powders typically offer all nine essential amino acids, which are the building blocks for muscles and almost every organ in your body. They also provide your body with carbohydrates to fuel exercise and healthy fats to aid in nutrient absorption.

Protein powder can offer a range of health benefits, including:
Weight loss
Weight management
Muscle growth
Post-workout recovery
Enhanced nutrition

Both organic and non-organic protein powder can provide these benefits to improving your nutrient profile and supporting your body. Also, you don’t need to be an athlete to benefit from protein powder. A protein supplement or meal replacement can help keep you full throughout long workdays or save you time in the morning.

Organic protein powder is considered by some to have added health benefits over non-organic options. For one, high pesticide exposure is linked with an increased risk of disease and serious conditions, which makes the reduced exposure with organics appealing. And since organic foods contain higher levels of certain nutrients, high-quality organic protein powder may support your body and vital functions more robustly.

On the other hand, non-organic protein powder is generally less expensive despite having similar amounts of protein. If you need to introduce protein supplements to your diet and cannot afford organic protein powder, there are several high-quality non-organic options.

Moreover, despite the perceived health benefits of organic supplements, there’s evidence supporting the safety of non-organic products. Research suggests that the heavy metal content in non-organic protein powders would not result in adverse health effects.

Due to limited and conflicting research, a comprehensive comparison of the benefits and drawbacks of organic and non-organic products is difficult. Use your best judgment when choosing products that work for your lifestyle.

Organic Protein Powder Options
If you’re going to buy organic protein powder, you want to get the best value for your money. But first, you want to decide what you want. The most popular options include:

Organic plant-based protein powder: Vegan protein powders are made from animal-free ingredients such as organic pea protein, soy protein, brown rice protein, hemp protein, or acacia protein. You can mix these protein powders with water, oat milk, almond milk, or another dairy-free milk instead of dairy milk to keep it plant-based.

Organic creatine or whey protein powder: Creatine and whey protein powder are made from cow’s milk. These options are usually made from grass-fed animals, which can enhance the nutrient profile of the milk. Learn more about organic whey protein powder vs. non-organic options.
If you can’t decide between vegan protein powders and whey protein powder, consider trying samples of lifeway organic kefir reviews both or consulting a healthcare professional. Both are effective in supporting your health and wellness.

Next, consider any preferences or dietary restrictions when purchasing your supplements. Things you might want to look for include:

Added dietary fiber
Added nutrients (i.e., calcium, potassium, or vitamin B complex)
Added probiotics
Allergen-friendly
Certified vegan
Cholesterol-free/Low-cholesterol
Dairy-free/Lactose-free
Gluten-free
Low-carb/Keto-friendly
No added sugar (may use stevia or erythritol)
No artificial flavors or sweeteners (may use natural flavors or sweeteners)
No preservatives
Soy-free
Unsweetened
USDA Organic certified

The options don’t stop here, either. Many high-quality organic protein powders have a great taste with delicious flavor options like vanilla bean, chocolate peanut butter, or creamy chocolate fudge. You can also add your own ingredients, such as a scoop of peanut butter, a tablespoon of cocoa powder, or a pinch of sea salt to customize the flavor further.

You’ll find plenty of other add-ins and options as you shop, too. For example, some protein powder might have extra organic fiber from flaxseeds and chia seeds or xanthan gum for a thicker consistency.

If you’re an athlete or enjoy tracking your nutrition, you might look for an organic protein powder that features a complete amino acid profile on the product labels. This is commonly included alongside serving sizes, daily values, and disclaimers. Some brands provide more nutrient information online as an accessibility option, too.

Finally, when choosing an organic protein powder, you can always look for the USDA Organic seal. Some products might claim to be organic but lack the USDA Organic certification, which verifies that all ingredients are organic.

Picking the Best Protein Powder
Now that you know your options, it’ll be easier to choose the best protein powder to support your goals. Whether you’re buying organic or non-organic, don’t simply opt for the first product you find. Instead, look for a high-quality brand you can trust, even if it takes a few extra business days to arrive.

Ingredient Optimized protein powder, for example, is designed for enhanced protein bioavailability. Better bioavailability means that your body can absorb the amino acids that make up the protein more efficiently, so you get the most from your supplement.

If a brand has poor bioavailability, meaning that your body can’t absorb it as easily, you might not be getting as many nutrients as you see on the label. Instead, you could be wasting your money on protein that is ultimately flushed from your system.

Instead of buying a large jar of protein powder, pick samples of the types of supplements and flavors that catch your eye. This will allow you to find one that meets your dietary needs, supports your physical activity, and has a great taste. And if you’re not a fan of protein shakes, consider meal replacement bars instead.

Support Your Health With Organic Protein Powder
Certified organic protein powder can provide the health benefits of organic ingredients and protein supplementation in one product. Organic ingredients can offer fewer pesticides and increased nutrients. But again, whether or not you buy organic, choosing quality protein powder designed for high bioavailability makes it easier for your body to get the building blocks it needs.

With the help of your healthcare provider, organic protein powder can work alongside a healthy diet to support your muscles, organs, and tissues. And remember, you don’t need to be an athlete to reap these rewards.

Once you’re ready to choose your supplements, we recommend ioWhey Protein and ioPea Protein for organic options. For a non-organic option that’s also good for weight loss, we recommend ioProtein Reduced Calorie.

Products like Clean Meal and Plantein by Kaged Muscle, or ioWhey or ioPlant by Performix are made using Ingredient Optimized supplements. While these products might not be USDA Organic certified, most include quality organic ingredients where it counts. Learn more about each option on their product pages before you buy.

Sporting goods is a big global business market and will continue to grow in the coming years. McKinsey’s WFSGI 2021 report shows the total sales of the global sports equipment retail market to be $149.6 billion in 2020 and is predicted to reach over $200 billion by 2024. So, if you have a sporting goods store business idea, you’re ready to get started. However, there is more to it than just knowing how to purchase and sell sporting goods. It involves market research, business registration, and the expertise to run a retailer. To keep you from overwhelming, we’ve put together the following 11 steps to guide you through how to start a sporting goods store profitably and legally.

You should constantly update the latest sports trends. For example, work-out at home during COVID-19 or extreme outdoor sports in the ecozone could bring new sportswear and equipment demand in 2022 and 2023.

Research your competitors
Before starting a sports business, it’s essential to know who your competitors are and how they’re doing. So, visit other sporting goods stores in the area to see what’s good and bad about the goods and services they offer. If there is a sport that consumers are interested in but underserved, this could be your opportunity to capture the market.

You should find out popular sports activities and hobbies in your area. For example, a nature reserve or park is a lucrative market for popular outdoor activities like kayaking and hiking. If your city has a lot of bike paths, the demand for bicycles is likely to increase. You can open a sporting goods business specializing in bicycle rental, sale, and repair.

Step 2. Identify the target market
If your sporting goods store caters to all kinds of sports interests, you can start with sporting goods products like camping, fishing, hiking, hunting, baseball, soccer, basketball, hockey, golf, and tennis. Be aware, however, that no one can cover a general sport or market as there isn’t a strong enough customer base to back it. So, instead of a mass-intensive approach that requires a lot of money, focus on specific sports like golf, fishing, or hunting to become a professional sports retailer and make a difference. Focusing on a niche market helps you cover every aspect of a particular sport without thinning your resources.

Select by customer group
Alternatively, you can focus on customer groups, such as amateur athletes, teenagers, or products aimed at children. Conversely, you can also go to the other end to cater to the professional market only and offer only high-end sportswear and equipment. A distinct niche from sports equipment is sports memorabilia and apparel.

To stand out from competitors, you need to be at the forefront of a new style or innovation. For example, if your store specializes in sports souvenirs, find and sell unique pieces that you can’t find elsewhere. That is the mechanism of success and sustainable business development in the long run.

Shape pricing strategy
Some sporting goods stores prefer to sell to coaches of sports teams because they often buy sports equipment in bulk for players on the team throughout the year. Besides, customers who prefer high-end sports equipment are often willing to pay a premium for high-quality items. Therefore, it’ll bring a more significant profit margin and determine your pricing model. Since sportswear comes in a wide range of prices, set your prices in line with your competitors, and your customers will remain loyal.

Step 3. Develop your business plan
Business summary
A clear plan of how to start a sports business is essential to map out the specifics of your sporting goods store. A business plan is a document describing the path you plan to take with your business and how to achieve success. Imagine what you want to achieve in 3–5 years and develop specific strategies to accomplish these goals. You can begin with:

The mission statement
The most prominent features or unique strengths of the business (What will set you apart from the competition?)
What specific products and services will you offer?
Cost

The biggest question is probably “What are the costs involved in opening a sporting goods store?”. According to Starter Story, the average cost for starting a sports business is $39,237. However, it should include start-up and ongoing costs to make it up and run in at least 2 Night vision hunting months.

Initial cost of a sporting goods store
The first is rent, as you’ll need to buy or rent retail space for your sporting goods business. Also, you’ll need to build a website for starting a sporting goods store online. Finally, the overhead costs include applying for a business license, business registry, initial inventory, stocking shelves, insurance, and utilities such as software and hardware.

Step 4. Register your business
After doing all the research and planning, make your dream come true by registering your sporting goods business legally. Depending on your local requirements, this process can be different. For that, you should hire an attorney to help with the necessary legal documents to register your new business and name your business.

Establish legal entity
Establishing a legal business entity as a limited liability company (LLC) saves you from being personally liable if someone sues your sporting goods store. However, the most popular type of business structure is the sporting goods franchise. In addition, there are many other types of businesses, such as partnerships and sole ownership.

Register tax
You’ll need to register for taxes before opening a sporting goods store. To register for taxes, you can apply for an Employer Identification Number (EIN) through the IRS website. Once you’ve registered your business, you can continue to apply for the permits required by your state or with your rental space.

Open a business bank account
You should open a business account to separate your personal assets from business assets. In addition, it also makes tax returns and accounting easier.

Set up business accounting
Documenting your various expenses and sources of income is crucial to understanding the financial performance of your business. Keeping accurate and detailed accounts also helps to simplify your annual tax return.

Step 5. Apply for the necessary licenses and permits
Licenses
If you run a business without the necessary permits, you could face hefty fines or even close your business. Business licensing requirements to operate a sporting goods store can vary from state to state and local to locality. Resources to find information about business licenses include:

Your county, town, or city clerk’s office
SBA’s Reference to State Licenses and Permits
Certificate of occupancy
Sporting goods stores are often required to obtain a certificate of occupancy (CO) to confirm that all government regulations, building codes, and zoning laws have been complied with. You need to apply for a CO with your local authorit
y before making any changes to your home. If you only use the rented premises, the landlord will be responsible for applying for a CO.

Step 6: Sign up for business insurance
Just like a business license, your sporting goods store needs insurance to operate legally and safely.

General Liability Insurance
The most common coverage small businesses need is General Liability Insurance (GLI) is the most common coverage small businesses need. If you’re unsure about how to start a sporting goods store and the risks you may face, GLI is a great choice.Other notable insurances

Step 7. Create an omnichannel shopping experience
With store closures due to COVID-19, many sports retailers develop online sales, and first-time online customers will stick with their new habits. As a sportswear retailer, you’ll need to put digital commerce at heart and provide a seamless omnichannel experience to retain old customers and reach your target audience.

The peculiarity of sporting goods stores is to manage items with multiple attributes such as style, color, size, color, or sports brand and multiple categories simultaneously. Therefore, it’s important to configure them quickly when opening a sporting goods store. A POS system for sports and outdoor business can help you do that easily. You can set up multiple locations from an all-in-one system, including:

POS working on desktop and iPad:
Allow your employees to move around and sell at the consulting floor, pop-up stores, skills workshops, or offsite events
Quick item selection:
Use the barcode scanner, search by SKU or product name to advise customers quickly
Optimal inventory:
Check inventory instantly from the POS screen in each location, report real-time inventory, and allow items to be moved between stores
Offline mode:
No interruption when creating orders, even without an internet connection
Order fulfillment:
Fulfill orders from online and various offline locations right on POS
Customer and sales data:
Provide customer profiles, order history on your website and all your offline sporting goods stores
Supplier management: Procurement from multiple suppliers on database

A financial market refers to a marketplace where various kinds of financial securities such as stocks, bonds, commodities, etc. are traded. The term ‘market’ can also refer to exchanges that are legal organizations that facilitate the trade of financial securities between buyers and sellers. In any case, these markets are categorized based of the type of financial securities that are traded through them. One such financial market is the Derivatives Market.

Derivatives market thus refers to the financial marketplace where derivative instruments such as futures, forwards and options contracts are traded between counterparties.

It was during the 1980s and 1990s that the financial markets saw a major growth in the trade of derivatives. A derivative is a financial instrument whose value is derived from the value of an underlying asset such as stocks, bonds, currencies, commodities, interest rates and/or different market indices. These underlying assets have fluctuating prices and returns, and derivatives provides a means to investors to reduce the risk exposure and leverage profits on these assets. Thus, derivatives are an essential class of financial instruments and central to the modern financial markets providing not just economic benefits but also resilience against risks. The most common derivatives include futures, forwards, options and swap contracts.

As per the European Securities and Markets Authority (ESMA), derivatives market has grown impressively (around 24 percent per year in the last decade) into a truly global market with over €680 trillion of notional amount outstanding. The interest rate derivatives (IRDs) accounted for 82% of the total notional amount outstanding followed by currency derivatives at 11%.

Main types of derivative contracts
Derivatives derive their value from an underlying asset, or simply an ‘underlying’. There is a wide range of financial instruments that can be an underlying for a derivative such as equities or equity index, fixed-income instruments, foreign currencies, commodities, and even other securities. And thus, depending on the underlying, derivative contracts can derive their values from corresponding equity prices, interest rates, foreign exchange rates, prices of commodities and probable credit events. The most common types of derivative contracts are elucidated below:

Forwards and Futures
Forward and futures contracts share a similar feature: they are an agreement between two parties to buy or sell a specified quantity of an underlying asset at a specified price (or ‘exercise price’) on a predetermined date in the future (or ‘expiration date’). While forwards are customized contracts i.e., they can be tailor-made according to the asset being traded, expiry date and price, and traded Over-the-Counter (OTC), futures are standardized contracts traded on centralized exchanges. The party that buys the underlying is said to be taking a long position while the party that sells the asset takes a short position and both parties are obligated to fulfil their part of the contract.

Options
An option contract is a financial derivative that gives its holder the right (but not the obligation) to trade an underlying asset at a price set in advance irrespective of the market price at maturity. When an option is bought, its holder pays a fixed amount to the option writer as cost for this flexibility of trading that the option provides, known as the premium. Options can be of the types: call (right to buy) or put (right to sell).

Swaps
Swaps are agreements between two counterparties to exchange a series of cash payments for a stated period of time. The periodic payments charged can be based on fixed or floating interest rates, depending on contract terms decided by the counterparties. The calculation of these payments is based on an agreed-upon amount, called the notional principal amount (or just notional).

Exchange-traded vs Over-the-counter Derivatives Market
Exchange-traded derivatives markets
Exchange-traded derivatives markets are standardized markets for derivatives trading and follows rules set by the exchange. For instance, the exchange sets the expiry date of the derivatives, the lot-size, underlying securities on which derivatives can be created, settlement process etc. The exchange also performs the clearing and settlement of trades and provide credit guarantee by acting as a counterparty for every trade of derivatives. Thus, exchanges provide a transparent and systematic course of action for any derivatives trade.

Over-the-counter markets
Over-the-counter (also known as “OTC”) derivatives markets on the other hand, provide a lesser degree of regulations. They were almost entirely unregulated before the financial crisis of 2007-2008 (also a time when derivatives markets were criticized, and the blame was placed on Credit Default Swaps). OTCs are customized markets and run by dealers who hedge risks by indulging in derivatives trading.

Types of market participants
The participants in the derivative markets can be categorized into different groups namely,

Hedgers
Hedging is a risk-neutralizing strategy when an investor seeks to protect a current or anticipated position in the market by limiting their risk exposure. They can do so by taking up an offset or counter position through derivative contracts. Parties such as individuals or companies who perform hedging are called Hedgers. The hedger thus aims to eliminate volatility against fluctuating prices of underlying securities and protect herself/himself from any downsides.

Speculators
Speculation is a very common technique used by traders and investors in the derivatives market. It is based on when traders have a strong viewpoint regarding the market behavior of any underlying security and though it is risky, if the viewpoint is correct, the speculation may reward with attractive payoffs. Thus, speculators use derivative contracts with a view to make profit from the subsequent price movements. They do not have any risk to hedge, in fact, they operate at a relatively high-risk level in anticipation of profits and provide liquidity in the market.

Arbitrageurs
Arbitrage is a strategy in which the participant (or arbitrageur) aims to make profits from the price differences which arise in the investments made in the financial markets as a result of mispricing. Arbitrageurs aim to earn low risk profits by taking two different positions in the same or different contracts (across different time periods) or on different exchanges to in-cash on price discrepancies or market inefficiencies.

Margin Traders
Margin is essentially the collateral amount deposited by an investor investing in a financial instrument to the counterparty in order to cover for the credit risk associated with the investment. In margin trading, the trader or investor is not required to pay the total value of your position upfront. Instead, they only need pay the margin amount which may vary and are usually fixed by the stock exchanges considering factors like volatility. Thus, margin traders buy and sell securities over a single session and square off their position on the same day, making a quick payoff if their speculations are right.

Criticism of derivatives
While derivatives provide numerous benefits and have significantly impacted modern finance and markets, they pose many risks too. In a 2002 letter to Berkshire Hathaway shareholders, Warren Buffet even described derivatives as “financial weapons of mass destruction”.

Derivatives are more highly leveraged due to relatively relaxed regulations surrounding them, and where one may need to put up half the money or more with buying other securities, derivatives traders can get by with just putting up a few percentage points of the total value of a derivatives contract as a margin. If the price of the underlying asset keeps falling, covering the margin account can lead to enormous losses. Derivatives are thus often criticized as they may allow investors to obtain unsustainable positions that elevates systematic risk so much that it can be equated to legalized gambling. Derivatives are also exposed to counterparty credit risk wherein there is scope of default on the contract by any of the parties involved in the contract. The risk becomes even greater while trading on OTC markets which are less regulated.

Derivatives have been associated with a number of high-profile credit events over the past two decades. For instance, in the early 1990s, Procter and Gamble Corporation lost more than $100 million in transactions in equity swaps. In 1995, Barings collapsed when one of its traders lost $1.4 billion (more Produits dérivés gamer than twice its then capital) in trading equity index derivatives.

The amounts involved with derivatives-related corporate financial distresses in the 2000s increased even more. Two such events were the bankruptcy of Enron Corporation in 2001 and the near collapse of AIG in 2008. The point of commonality among these events was the role of OTC derivative trades. Being an AAA-rated company, AIG was being exempted from posting collateral on most of its derivatives trading in 2008. In addition, AIG was unique among CDS market participants and acted almost exclusively as credit protection seller. When the global financial crisis reached its peak in late 2008, AIG’s CDS portfolios recorded substantial mark-to-market losses. Consequently, the company was asked to post $40 billion worth of collateral and the US government had to introduce a $150 billion financial package to prevent AIG, once the world’s largest insurer by market value, from filing for bankruptcy.

Conclusion
Derivatives were essentially created in response to some fundamental changes in the global financial system. If correctly handled, they help improve the resilience of the system, hedge market risks and bring economic benefits to the users. Thus, they are expected to grow further with financial globalization. However, past credit events have exposed many weaknesses in the organization of their trading. The aim is to minimize the risks associated with such trades while enjoying the benefits they bring to the financial system. An important challenge is to design new rules and regulations to mitigate the risks and to promote transparency by improving the quality and quantity of statistics on derivatives markets.