derivatives

Call and put options may be traded on the ASX 200 (code XJO), the ASX 200 Property Trusts Index (XPJ) and ASX 50 (XFL).  

The ASX200 Index is down to around 4300 from 6800 in 2007 as market correction, Lehman collapse, panic and a litany of margin selling of stocks brough the market to the lows and where id did not yet recover. In effect, we witnessed a significant unwinding of high gearing levels of investors that had built up gradually since 2000 at the very start of the credit-fueled bull market.

Buffett Letter 2011

For investors seeking a moderately geared investment strategy, self-funding instalment (SFI) warrants can be a suitable instrument that provides many of the benefits of owning the underlying asset, with a lower initial outlay of capital. For self managed superannuation funds (SMSFs), instalments — including SFIs — are one of only a few forms of geared equity investment eligible for use within the fund. They offer investors low cost and low administration and, as a result, have become a popular investment alternative for this group.

From WealthBriefing:

The total amount of credit derivatives outstanding held by US banks (this ignores European time-bombs and global banks) was $15.659 trillion.

In US dollar amounts in millions ($):

Having looked at the CBUS financial reports I found few interesting points: