Risk management

More about derivatives

Financial risks are part of the normal life of any company. In order to remain competitive, you might choose to manage those risks through the use of one or more techniques.

As the name suggests, "derivatives" are products derived from standard transactions on underlying instruments. The underlying instrument may be an interest rate, currency, equity or bond. The price of a derivative varies amongst others according to the price of the underlying instrument.

ING is able to offer tailor-made products through the OTC (over-the-counter) market. An organised market invariably offers standard products (standard duration, strike price, number of options per contract, etc) whereas on the OTC market you can determine almost all the parameters/procedures for the derivatives concerned, according to your needs. However, the models used to determine the price are the same as those used by the standardised market.

Our online reporting tool, ING eMTM, allows a close follow-up of your derivatives positions.