Shaving is a daily ritual that bridges the gap between self-care and grooming. At the heart of this ritual lies the essential tool known as shaving cream. This seemingly humble product plays a crucial role in achieving a smooth, comfortable, and irritation-free shave. In this exploration of shaving cream, we delve into its history, composition, types, application techniques, and its significance in modern grooming.

A Historical Glimpse

The practice of shaving dates back centuries, with various cultures employing different methods and substances to enhance the shaving experience. Ancient Egyptians, for example, used a mixture of animal fat and wood alkali to create a rudimentary shaving cream. However, the modern concept of shaving cream as we know it today began to take shape in the 19th century.

The earliest commercial shaving creams were introduced in the mid-1800s and were often available in solid or semi-solid forms. These early versions were primarily made from a combination of soap and water, with some formulations incorporating natural oils and fragrances. The evolution of technology and chemistry over the decades led to the development of more sophisticated and effective shaving creams that catered to specific skin types and preferences.

Composition and Formulations

Modern shaving creams are formulated to provide a luxurious and comfortable shaving experience. They consist of a blend of ingredients carefully chosen to create a rich lather, soften facial hair, and lubricate the skin. The primary components of shaving cream include:

Water: Water serves as the base of most shaving creams, providing the necessary fluidity for the product to be easily applied to the skin.

Soap: Soap, usually in the form of potassium or sodium salts of fatty acids, acts as a surfactant that breaks down oils and dirt, allowing for a thorough cleanse of the skin and hair.

Emollients and Oils: Natural oils, such as coconut oil, jojoba oil, and glycerin, are commonly added to shaving creams to moisturize and soften the skin and hair, reducing the friction caused by the razor.

Fragrance: Essential oils and synthetic fragrances are often included to enhance the sensory experience of shaving. These scents can range from traditional, woody aromas to more contemporary, citrusy notes.

Humectants: Ingredients like glycerin help retain moisture on the skin's surface, preventing excessive drying during the shaving process.

Stabilizers and Thickeners: These additives maintain the consistency of the shaving cream, allowing it to be easily whipped into a lather.

Types of Shaving Cream

Shaving creams come in a variety of formulations, each catering to different skin types, preferences, and techniques. The main types include:

Traditional Shaving Cream: These are often found in tubs or tubes and require the use of a shaving brush to create a lather. Traditional shaving creams offer a classic, nostalgic experience and are favored by wet shaving enthusiasts.

Brushless Shaving Cream: Also known as shaving gels or foams, these products do not require a brush for lathering. They are dispensed as a gel or foam and are particularly convenient for those seeking a quick and fuss-free shave.

Shaving Soap: While not exactly a cream, shaving soaps are solid formulations that require a brush to create a lather. They often have a more traditional feel and can provide a rich, dense lather.

Cream-to-Foam Shaving Cream: These products start as a cream and transform into a rich foam when applied to the skin. They offer a compromise between the traditional and brushless options.

Application Techniques

Achieving the perfect lather is key to a comfortable and close shave. Whether using a traditional shaving cream, brushless gel, or shaving soap, the following techniques can help create an optimal lather:

Traditional Shaving Cream with a Brush: Wet the brush with warm water, then swirl it in the shaving cream until a rich lather forms. Apply the lather to the face using circular motions, ensuring an even distribution.

Brushless Shaving Cream or Gel: Dispense a small amount of the product onto wet hands. Rub the product between your palms to create a lather, then apply it to the face.

Shaving Soap with a Brush: Wet the brush and then use circular motions to load the brush with soap. Transfer the loaded brush to a shaving bowl or directly to the face, then whip the lather into a rich foam.

Cream-to-Foam Shaving Cream: Apply a small amount of the cream to a wet face and massage it in. The product will transform into a lather as you work it.

Significance in Modern Grooming

In the era of multi-blade Stirling Soap razors and electric shavers, the role of shaving cream might seem diminished. However, its importance in modern grooming cannot be overstated. Here are some reasons why shaving cream remains an integral part of the shaving process:

Protection and Lubrication: Shaving cream creates a protective barrier between the razor and the skin, minimizing friction and reducing the risk of nicks, cuts, and irritation.

Softening Facial Hair: The emollients and oils in shaving cream help to soften the hair, making it easier to cut and reducing the force required during shaving.

Moisturization: The moisturizing properties of shaving cream prevent the skin from drying out during the shaving process, leaving it feeling soft and supple.

Enhanced Sensorial Experience: The scents and textures of shaving creams add a sensory dimension to the shaving ritual, transforming it from a routine task into a moment of self-indulgence.

Preparation for Shaving: The act of applying shaving cream serves as a preparatory step, opening up the pores and lifting the hair follicles, resulting in a more effective and comfortable shave.

Conclusion

Shaving cream, with its rich history, diverse formulations, and multifaceted benefits, remains an essential component of the shaving ritual. Whether one prefers the traditional experience of using a brush and soap or the convenience of brushless gels, the act of lathering up with shaving cream continues to bridge the gap between personal care and grooming. In a world where efficiency often trumps tradition, the enduring significance of shaving cream as a tool for achieving a close, comfortable, and enjoyable shave reminds us that the simple acts of self-care can be imbued with meaning and satisfaction.

Vaping has become increasingly popular as a smoking alternative, and one of the key components of a satisfying vaping experience is the choice of vape juice. With a wide range of vape juice brands available on the market, each offering unique flavors, nicotine strengths, and VG/PG ratios, it can be overwhelming to choose the right one. In this comprehensive guide, we will delve into some of the most popular vape juice brands, providing an overview of their offerings, flavor profiles, and key features. Whether you're a seasoned vaper or just starting out, this guide will help you make informed decisions about the vape juice brands that best suit your preferences.

The Sauce LA:

The Sauce LA is a well-known vape juice brand that has gained a loyal following for its premium-quality products. They offer an extensive range of flavors, from fruity to dessert-inspired blends. The brand ensures the use of high-quality ingredients and employs rigorous testing procedures to deliver consistent taste and vapor production. Some of their notable flavors include the highly acclaimed "Capone," a cereal-infused blend, and "Model Tea," a refreshing iced tea flavor.

Naked 100:

Naked 100 is renowned for its simple yet bold flavor profiles. Their vape juices are crafted with a focus on capturing the essence of fruit blends. From tangy tropical flavors like "Lava Flow" to the succulent sweetness of "Very Berry," Naked 100 offers a wide array of choices to satisfy fruit enthusiasts. They also offer nicotine salt versions of their e-liquids, catering to those who prefer a smoother vaping experience.

Cuttwood:

Cuttwood is a premium vape juice brand that has garnered a reputation for its exceptional flavors. They pride themselves on using only the finest ingredients to create a luxurious vaping experience. Cuttwood's signature flavor, "Unicorn Milk," is a creamy blend of strawberries and custard that has become an instant classic. Their lineup also includes other popular flavors such as "Boss Reserve," a combination of honey graham crackers, roasted nuts, and banana.

Cosmic Fog:

Cosmic Fog is a brand that focuses on creating complex, layered flavors that are both unique and satisfying. With a commitment to quality, Cosmic Fog uses high-grade ingredients and a meticulous production process. Their vape juice lineup features flavors like "Milk and Honey," a creamy delight with hints of marshmallow and honey, and "Sonrise," a fusion of passion fruit, kiwi, and pineapple. Vapers seeking sophisticated flavor combinations often turn to Cosmic Fog for an elevated experience.

Vapetasia:

Vapetasia is known for its delectable dessert-inspired e-liquids. Their flavors often replicate popular sweet treats, offering vapers a guilt-free indulgence. box mod kits vape "Killer Kustard" is one of their flagship flavors, delivering a rich and smooth vanilla custard experience. Vapetasia also offers unique options like "Pineapple Express," a tropical blend of pineapple and cream. If you have a sweet tooth, Vapetasia's vape juices are worth exploring.

Jam Monster:

For vapers who enjoy the taste of fruity spreads on toast, Jam Monster offers an enticing selection. Their vape juice lineup centers around fruit flavors combined with buttery toast and a hint of sweet jam. "Strawberry" and "Blueberry" are two of their most popular flavors, providing a comforting and nostalgic vaping experience. Jam Monster's e-liquids are a perfect choice for those seeking a breakfast-inspired vape.

Conclusion:

Choosing the right vape juice brand is crucial for an enjoyable vaping experience. This guide has provided an overview of some popular vape juice brands, showcasing their unique offerings, flavor profiles, and key features. Remember, taste is subjective, and what suits one person may not suit another. It is recommended to experiment with different brands and flavors to find the perfect vape juice that matches your preferences. Always prioritize reputable brands that prioritize quality ingredients and adhere to safety standards. Happy vaping!

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 SMOK RPM C 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 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.

In today's fast-paced digital age, businesses need to have a strong online presence to thrive and succeed. Digital marketing has emerged as a powerful tool to reach and engage with a wider audience, promote products and services, and drive business growth. This comprehensive guide aims to provide an in-depth understanding of digital marketing, its various components, and effective strategies to implement in the digital landscape.

Understanding Digital Marketing:

Digital marketing refers to the promotion of products or services using digital channels such as search engines, social media platforms, websites, email, mobile apps, and more. It encompasses a wide range of activities aimed at attracting, engaging, and converting potential customers. Unlike traditional marketing, digital marketing allows businesses to target specific demographics, measure campaign effectiveness, and optimize strategies in real-time.

Key Components of Digital Marketing:

Search Engine Optimization (SEO):

SEO is the process of improving a website's visibility and ranking on search engine results pages (SERPs). By optimizing website content, keywords, and meta tags, businesses can increase organic traffic and gain higher visibility in search engine listings.

Search Engine Marketing (SEM):

SEM involves paid advertising on search engines. It includes pay-per-click (PPC) campaigns, where advertisers bid on specific keywords to display their ads at the top of search results. SEM offers immediate visibility and can be highly targeted based on user search intent.

Social Media Marketing (SMM):

SMM involves leveraging social media platforms such as Facebook, Instagram, Twitter, and LinkedIn to connect with target audiences. It includes creating engaging content, running paid ad campaigns, and fostering customer relationships through social media interactions.

Content Marketing:

Content marketing focuses on creating and sharing valuable, relevant, and consistent content to attract and retain a specific audience. It includes blog posts, videos, infographics, eBooks, and more. The goal is to provide valuable information to build trust, brand awareness, and establish thought leadership.

Email Marketing:

Email marketing involves sending targeted messages to a group of individuals who have opted to receive updates from a brand. It can include newsletters, promotional offers, product updates, and personalized recommendations. Effective email marketing can drive customer engagement and loyalty.

Influencer Marketing:

Influencer marketing involves collaborating with influential individuals who have a large online following to promote products or services. Influencers can create sponsored content, reviews, or endorsements to reach their audience and drive brand awareness.

Mobile Marketing:

With the increasing use of smartphones, mobile marketing has gained significant importance. It includes optimizing websites for mobile devices, creating mobile apps, and running targeted mobile advertising campaigns to reach users on their smartphones or tablets.

Developing a Digital Marketing Strategy:

Define Goals:

To create an effective digital marketing strategy, it's crucial to define clear and measurable goals. These goals could include increasing website traffic, generating leads, improving conversion rates, or enhancing brand awareness. Specific, measurable, achievable, relevant, and time-bound (SMART) goals provide a clear direction for the strategy.

Identify Target Audience:

Understanding the target audience is essential for effective digital marketing. Conduct market research, analyze customer demographics, interests, and online behavior to develop buyer personas. These personas help in tailoring marketing messages and selecting appropriate channels to reach the intended audience.

Choose Relevant Channels:

Selecting the right digital channels to reach the target audience is vital. Consider the characteristics of each channel, the preferences of the target audience, and the marketing objectives. It's important to focus on channels that align with the target audience's online habits and preferences.

Create Compelling Content:

Content plays a pivotal role in digital marketing success. Develop high-quality content that resonates with the target audience. Use a mix of text, images, videos, infographics, and interactive elements to make the content engaging and shareable. Tailor the content to suit each digital channel and the preferences of the target audience.

Implement Search Engine Optimization (SEO):

Optimize website content, meta tags, URLs, and images to improve search engine rankings. Conduct keyword research to identify relevant keywords and incorporate them strategically into the content. Focus on creating valuable, informative, and user-friendly content that aligns with search engine algorithms.

Leverage Social Media Platforms:

Choose social media platforms that align with the target audience and business objectives. Develop a consistent brand presence across platforms and create engaging content that encourages audience interaction. Utilize social media analytics to measure the effectiveness of campaigns and make data-driven decisions.

Utilize Email Marketing:

Build an email list of interested subscribers and regularly send targeted and Online-Marketing personalized emails. Segment the audience based on demographics, preferences, and past interactions to deliver relevant content. Monitor open rates, click-through rates, and conversions to optimize email campaigns.

Analyze and Measure Results:

Implement tracking tools and analytics to monitor the performance of digital marketing efforts. Measure key performance indicators (KPIs) such as website traffic, conversions, engagement rates, and ROI. Use the insights gained to refine strategies, optimize campaigns, and allocate resources effectively.

Emerging Trends in Digital Marketing:

Artificial Intelligence (AI) and Machine Learning (ML):
AI and ML technologies are revolutionizing digital marketing. They enable automation of tasks, personalized customer experiences, predictive analytics, and chatbots for customer service. AI-powered algorithms can analyze vast amounts of data to deliver targeted content and improve campaign performance.

Voice Search Optimization:

With the rise of voice assistants like Siri, Alexa, and Google Assistant, optimizing content for voice search has become essential. Marketers need to focus on conversational keywords and long-tail phrases to align with voice search queries.

Video Marketing:

Video content continues to dominate the digital landscape. Incorporating videos into digital marketing strategies can significantly increase engagement and conversions. Live streaming, video ads, and interactive videos are effective ways to connect with audiences.

Personalization:

Consumers expect personalized experiences. Tailor content, offers, and recommendations based on individual preferences and behaviors. Utilize data-driven insights to create targeted marketing campaigns that resonate with specific customer segments.

User-generated Content (UGC):

UGC refers to content created by customers, such as reviews, testimonials, and social media posts. Encourage customers to share their experiences and engage with your brand. UGC adds authenticity and trustworthiness to marketing efforts.

Augmented Reality (AR) and Virtual Reality (VR):
AR and VR technologies provide immersive experiences and have gained popularity in various industries. Marketers can leverage these technologies to create interactive and engaging campaigns, allowing customers to visualize products or experiences.

Conclusion:

Digital marketing has become an indispensable part of any successful business strategy. By understanding the various components and implementing effective strategies, businesses can reach a wider audience, drive brand awareness, and achieve their marketing goals. Keep abreast of emerging trends and continually adapt your digital marketing efforts to stay ahead in the dynamic digital landscape. With careful planning, creativity, and data-driven decision-making, digital marketing can lead to significant growth and success.

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 Produit dérivé bd transactions in equity swaps. In 1995, Barings collapsed when one of its traders lost $1.4 billion (more 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.