what are logistics and derivatives and give me any website where information is available regarding this?

Answer 1

I've never heard of logistics as a financial investment, but derivitives are fairly common. The two most common types, called options, are "calls" and "puts".

Buying a call gives you the option, but not the obligation, to buy a stock at a specific price within a set period of time. Here is an example:

I believe IBM stock price will go up in the next six months. Currently it's at $76.42. I can buy a call for a small fee ($3.30) that gives me an option to purchase that share of IBM for $80 at any time up to the expiration of the option (6 months). So I need the stock price to go up to at least $83.30 just to break even. But if the stock goes up to say, $90, I can exercise my option to buy the share for the $80, and immediately sell the share and take the $6.70 profit without ever having to cough up the $80 for the share price. This allows you to make a large profit off of very little actual investment. If the share never goes above your break even point, you only lose your $3.30 fee when the option expires.

Puts are exactly the opposite. They give you the option, but not the obligation, to sell a stock at a specific price for a period of time. You use these when you're betting a stock will go down.

One thing to note is that options are sold in blocks of 100 shares. And I don't really believe IBM is going to go up.

Answer 2

Logistics is everything you need to move things or people from point A to point B. It is normally thought to include information, transportation, (ware)housing, and packaging.

Derivative (or derivative security) is a financial instrument whose value is determined by the value of another financial instrument (usually called "the underlying"). Some examples of derivatives are options on stocks, futures on stock indexes, interest rates, and foreign currencies, interest rate swaps, and currency swaps.

But I'd like to ask a question, too; how did these two totally unrelated things make it into one question?

Answer 3

Wikipedia.org for both (to get started)