Wealth management and investment advisory

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+27 11 268 1282

Bayswater Capital Head Office
Unit 4, Ground Floor,
Commerce Square
Rivonia Road
Sandhurst, 2194

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Derivative Trading

A derivative is a financial instrument that derives its performance from the performance of an underlying asset.

They are versatile financial tools which can used either to manage risk or to take exposure to an asset.

Derivatives allow an investor to hedge against the decline in the value of an existing investment. Using a derivative to protect the value of an investment already held by an investor also allows the investor to potentially monetise the investment without selling it and triggering a tax event.

Investors can use derivative structures to profit from either the increase or decrease in the value of an asset which they do not already hold. These structures can also provide leverage which allows investors to gain exposure more than the investable cash which they hold.

Derivative trades include:

  • Equity Structuring
  • Asset for Share Transfers
  • Total Return Swaps
Hedge Funds 1

Bayswater Capital is a Derivative Trading Specialist

We are a well-established derivative trading specialist trusted by high-net-worth and family office clients for our client-specific solutions. As your dedicated investment partner, we will work closely with you to develop bespoke derivative trading solutions and innovative investment ideas that preserve your wealth and guide you to lasting financial well-being.

A derivative is an agreement made between two or more parties who can trade over the counter or on an exchange (OTC). These contracts have their own risks and may be used to trade a wide range of assets. Derivative prices are based on changes in the underlying asset. In the global financial system, derivative markets play crucial functions. Although derivatives can be complicated, they are modernised versions of behaviours that have existed for thousands of years, such as betting among friends or farmers agreeing to sell their harvests in advance as insurance.

Bayswater Capital is a well-established niche player in the financial services sector. We have a strong focus on personal relationships coupled with insightful strategies that enables us to help clients make the best financial decisions around derivative trading to protect their wealth in the long term.

We hope to build long-lasting relationships with our clients that can add value to them across all facets of their financial lives.

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