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Why derivatives trading on the bourse is long overdue

Nairobi Securities Exchange (NSE)trading floor.

The Nairobi Securities Exchange (NSE) is taking too long to start trading in derivatives - financial instruments whose value depends on the price of another asset. Derivatives are useful in reducing the risk exposure associated with trading in securities.

They offer investors additional investment opportunities. For instance, instead of buying the asset, the investor can just buy the right to buy that asset.

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