Do you need good knowledge of derivatives in the finance industry?

Question

I have recently completed my bachelor of finance degree and I am soon planning to look for work (financial planning, financial analysis etc.)

I did pretty well in university and i’d say I have a good understanding about finance however one thing I always wasn’t fully confident in was the derivatives side (so dealing with options). If i want to become a financial planner or analyst, do I need to have a good understanding of derivatives? I remember one lecturer saying that you can work in the industry without ever dealing with derivatives because that’s a whole separate thing. Is that true?

L. E. Gant · Accepted Answer

It's true you can work in the finance industry without ever dealing with derivatives.

While they are a very separate thing, it's a good idea to know a bit more than the rudiments of handling them. But remember: you can always call in someone who specializes in them

Do you need good knowledge of derivatives in the finance industry?

1 Answer