The Best Books on Derivatives of 2021

This post may contain affiliate links, meaning we get a commission if you make a purchase through our links, at no cost to you.

Spread the love

Share on facebook
Facebook
Share on twitter
Twitter
Share on reddit
Reddit
Share on pinterest
Pinterest

Getting started with derivatives can be a complicated concept. But it’s actually not as complicated as you might think. There are many people who believe that it’s worse or harder than it actually is, but if you’re willing to start looking closer, you can absolutely see just how much you can learn without getting too caught up. It just takes the best books on derivatives to get you started.

So, let’s take a look at some of the best books on derivatives. If you’re interested in financials and you want to learn how to use derivatives in your own investments, you should take a closer look at the recommended books on derivatives. We have several that are going to help you with all aspects of this field. That way, you’re going to have a good handle on how to enhance your investment process.

We’re going to help you with an introduction to futures and options markets and the best books on open interest analysis. No matter which aspect of derivatives you need help with, we’re going to help you along. Each of these books will help you create the strategy that you need in order to succeed in finance, all around.

If you want to just get back to studying, get our top pick for books on derivatives here.
Our Top Favorite
Options, Futures, and Other Derivatives ( Tenth 10th Edition )
Our Top Runner Up
Introduction to Futures and Options Markets (3rd Edition)
Our Top Value Pick
All About Derivatives Second Edition (All About Series)
Book Title
Options, Futures, and Other Derivatives
Introduction to Futures and Options Markets
All About Derivatives
Prime Eligible?
-
-
-
Our Top Favorite
Options, Futures, and Other Derivatives ( Tenth 10th Edition )
Book Title
Options, Futures, and Other Derivatives
Prime Eligible?
-
Our Top Runner Up
Introduction to Futures and Options Markets (3rd Edition)
Book Title
Introduction to Futures and Options Markets
Prime Eligible?
-
Our Top Value Pick
All About Derivatives Second Edition (All About Series)
Book Title
All About Derivatives
Prime Eligible?
-

Last update: 2021-03-07

Our Favorites for Best Books on Derivatives

These books are our absolute favorites, and we definitely know that you’re going to learn a lot with them. Each of these books will help you look at derivatives in ways that you haven’t before, and they’ll make the entire concept a whole lot easier to understand. For anyone who wants to know all of the details of the field, these are the best options for books on derivatives.

Options, Futures, and Other Derivatives by John C. Hull

John Hull is well known for his books on derivatives and other aspects of finance. Options, Futures, and Other Derivatives is no different. You’ll learn all of the most essential concepts and foundations related to each of these topics and more. In fact, Options, Futures, and Other Derivatives is designed as the top guide for all those looking to get into the field. Considered one of the top books for business and economics professionals, Options, Futures, and Other Derivatives delves into the latest information at every front.

With Hull, you’ll learn about the Black-Scholes-Merton formulas, valuation of derivatives, and even topics like securitization. Ideal for those who are currently in courses such as business, financial engineering, economics, and other financial areas, Options, Futures, and Other Derivatives is available in several different formats, including an eBook and textbook. You can also get access to the online system that will give you even more information and study materials that you can use to prepare for your courses or a career in the field.

Why Choose This Derivatives Book:

  • Gives in-depth information related to all areas of derivatives and more
  • Includes updated examples and discussions for easier application to real life

What Makes This Derivatives Book Unique:

  • Website access available for additional information and studying on the go
  • Looks into the modern topics and concerns related to derivatives
Options, Futures, and Other Derivatives ( Tenth 10th Edition )
Options, Futures, and Other Derivatives ( Tenth 10th Edition )
  • JOHN C HULL (Author)
  • English (Publication Language)
  • 03/09/2021 (Publication Date) - PEARSON INDIA (Publisher)

Last update: 2021-03-07


Derivatives Demystified: A Step-By-Step Guide to Forwards, Futures, Swaps, and Options by Andrew M. Chisholm

While few people actually study or feel that they understand derivatives, they are actually all around us every day. Derivatives Demystified seeks to give a better and more thorough understanding of the subject to those who don’t currently know what they’re looking at. You’ll learn how derivatives currently exist within the financial world, including banking, finance, and investing. You’ll also get an introductory guide to derivatives and how they work so, you can break down this seemingly complicated subject.

Derivatives Demystified uses straightforward terminology and skips over the complex formulas to make the underlying concept of derivatives much easier. You’ll also get a good look at practical applications of derivatives and how they can be used in real life to solve problems that occur frequently. The latest edition looks at futures, swaps, options, and more as simple building blocks that make up the concept of derivatives, allowing those without a foundation in mathematics to still get a good understanding of what they are made of and how they come to apply to the world around us.

Why Choose This Derivatives Book:

  • Evaluates the concept of derivatives from a minimal understanding for beginners
  • Offers a step-by-step approach to understanding and using derivatives

What Makes This Derivatives Book Unique:

  • Focuses on the basic building blocks to derivatives rather than a more comprehensive understanding
  • Updated with the latest information related to derivatives in the current world

Last update: 2021-03-07


Derivatives – CFA Institute Investment Series by Wendy L Pirie

For those who want the most comprehensive understanding of derivatives possible, Derivatives is an excellent resource for just that. With Derivatives, you’ll get a thorough understanding of the markets, the use of options, risk management, different forms of derivatives, contracts, portfolio management, and more. You will also get an in-depth look at just how each of these various aspects can affect the way that derivatives are used in society at large. Derivatives is also available with a specialized workbook to aid in your understanding of the topic.

Written through the CFA Institute, Derivatives is the product of investment professionals and the governing body of the CFA, Investment Foundations, and CIPM Programs. You’ll learn a great deal of information, and you’ll have plenty of resources related to the financial world through the use of Derivatives. Great for those already taking a course in derivatives and finance, Pirie’s book offers plenty in the way of best practices, forward, futures, options, and swaps markets and valuation of each of these types of contracts. You’re also going to have comprehensive coverage so you can learn anything and everything you need to know on the topic right here.

Why Choose This Derivatives Book:

  • Comprehensive guide to all topics related to derivatives and markets
  • Up-to-date guide written by the CFA Institute, which governs bodies related to investments

What Makes This Derivatives Book Unique:

  • Includes chapter summaries to ensure better retention of content in each section
  • Workbook available to help improve overall understanding and application of content
On Sale
Derivatives (CFA Institute Investment Series)
Derivatives (CFA Institute Investment Series)
  • WILEY
  • Hardcover Book
  • English (Publication Language)

Last update: 2021-03-07


Runner Ups for Best Books on Derivatives

If you still want more books and you need a little more help getting the information you’re looking for these. These runner ups are still high quality books, but they’re not going to give you quite as much information as you will get from our favorites. They might not cover quite as much detail or give you as broad of an understanding, but you’ll still get quality here.

Introduction to Futures and Options Markets by John Hull

When it comes to the best of the best on futures and options markets, you’re going to want to take a closer look at John Hull. Introduction to Futures and Options Markets is written in a style that’s easy for just about anyone to read, making it an excellent choice for those who are just getting started. The idea is to make the concept of derivatives and all areas of it as simple as possible for those who don’t have a background in finance but want to have a better understanding.

For those studying any area of futures and options, derivatives, financial engineering, risk management, or financial mathematics, Introduction to Futures and Options Markets is an excellent way to start the process. John Hull is a professor in derivatives and risk management and is actually internationally recognized on the subject, with a number of high-level awards and acknowledgments to show for it. Introduction to Futures and Options Markets dives deep into the content necessary to succeed in this field and works as an excellent accompaniment to any class on the subject.

Why Choose This Derivatives Book:

  • Written by a renowned professor on the subject of derivatives and risk management
  • Breaks down content to make it easy for those without a background to understand

What Makes This Derivatives Book Unique:

  • Introduces the topics and principles in a way that helps beginners to get started in the subject
  • Pairs well with courses in financial concepts and derivatives specifically
On Sale
Introduction to Futures and Options Markets (3rd Edition)
Introduction to Futures and Options Markets (3rd Edition)
  • Hardcover Book
  • Hull, John (Author)
  • English (Publication Language)

Last update: 2021-03-07


Derivatives Markets by Robert L. McDonald

Derivatives Markets delves deep into the concept of instruments and specifically those instruments as it relates to corporations. With a strong look at the mathematical aspects of derivatives and methods of joining the theory with the actual conception of the subject, you’ll learn a great deal with McDonald. Derivatives Markets focuses on the core principles of economics that actually underlie the entirety of the field, making it a quality guide for those who want to get into derivatives. You’ll get a stronger foundation of the finance even if you’re not actually a finance major.

Written in a way that’s easy to understand for everyone, Derivatives Markets ensures that you can follow along and learn a topic that’s considered complex for most. You’ll be able to get an intense look into the subject but also a good start for those who are still getting into it. Derivatives Markets is a great book to follow along with a class, or you can read it entirely on its own to find out more about the topic for yourself. There’s even an international edition if you’re looking for more information about the subject in other parts of the world.

Why Choose This Derivatives Book:

  • Makes the information easy to understand for those who aren’t already in the finance field
  • Dives deep into all of the minutia of the topic to make sure you have a strong foundation and the building blocks

What Makes This Derivatives Book Unique:

  • Focuses on joining together the theory of derivatives with the actual application and concepts behind it
  • Presents mathematics in an easier to understand way for all learning levels
On Sale
Derivatives Markets (Myfinancelab)
Derivatives Markets (Myfinancelab)
  • Includes CD which contains Microsoft Excel Spreadsheets with Option Pricing Functions and Selected Data
  • Hardcover Book
  • McDonald, Robert (Author)

Last update: 2021-03-07


Value Pick for Best Books on Derivatives

If you’re looking to save some money, these are some books that you can pick up easily and inexpensively. All you have to do is take a look, and you’ll see why we still recommend these. They’re not going to give you a whole lot of information in each book, but you’ll get a broad overview or a very focused view of specific topics to help out the process.

All About Derivatives by Michael Durbin

If you’re looking for an inexpensive guide that will help you better understand derivatives even if you’ve never studied them before, then All About Derivatives is what you need. You’ll get more information about contracts, concepts, proven methods for valuation, and more. All About Derivatives evaluates forward, futures, swaps, and options as well as the different pricing methods that are used. You’ll learn different hedging strategies as well as ways to reduce your overall risk when engaging with derivatives and working within a corporation or other entity.

With All About Derivatives, you’re going to have chapters on how derivatives affect the rest of the world and what’s going on within the financial world. You’ll also have real-world examples that help you get a better idea of what each of the different concepts really means for you. Everything is presented in a way that’s easy to understand and designed to help even those with no background in finance to understand what’s going on and what it can do for your own future.

Why Choose This Derivatives Book:

  • Written in an easy-to-follow format for those without a background in derivatives and finance
  • Evaluated vital concepts as well as valuation, contracts and pricing methods

What Makes This Derivatives Book Unique:

  • Uses real-world examples to make it easier to relate derivatives to the world around you
  • Updated guide with the most up-to-date information to help those within the field or hoping to get into it understand the current market
All About Derivatives Second Edition (All About Series)
All About Derivatives Second Edition (All About Series)
  • Amazon Kindle Edition
  • Durbin, Michael (Author)
  • English (Publication Language)

Last update: 2021-03-07


How to Choose the Best Books on Derivatives for You

For those who still want a little more or are looking to dive into specific areas of derivatives, you’re going to need to know how to choose the right books. Well, this section is going to help you understand what it takes to get the best books on derivatives, no matter which portion you’re interested in. These questions will allow you to look a little closer at what you want to learn and why you want to learn it so you can find something that works for you.

What Are You Using It For?

If you are looking to pursue a career in derivatives and finance, you’ll want to take a closer look at more in-depth books and ones that will help you understand the minutia of the subject. On the other hand, if you’re only looking to learn a little on the topic for your own purposes, you may be able to get a basic or introductory guide.

What’s Your Foundation?

If you’re already taking a class on derivatives, you could get a more advanced text that will help you build on that foundation. On the other hand, if you’ve never studied derivatives before, you’ll need a book that starts from the very basics and works you up to something more advanced.

What Else Do You Need to Know?

If you’re only looking to learn about derivatives, you can find a number of books that are focused on this topic. If you want to learn more about other areas of finance and the ways that derivatives are used within the market and the world, you may want to look for a broader option that will help you learn about more of the financial world.

Wrapping Things Up: The Best Books on Derivatives

In closing, here are the best books on derivatives we looked at today:

Our Top Favorite
Options, Futures, and Other Derivatives ( Tenth 10th Edition )
Our Top Runner Up
Introduction to Futures and Options Markets (3rd Edition)
Our Top Value Pick
All About Derivatives Second Edition (All About Series)
Book Title
Options, Futures, and Other Derivatives
Introduction to Futures and Options Markets
All About Derivatives
Prime Eligible?
-
-
-
Our Top Favorite
Options, Futures, and Other Derivatives ( Tenth 10th Edition )
Book Title
Options, Futures, and Other Derivatives
Prime Eligible?
-
Our Top Runner Up
Introduction to Futures and Options Markets (3rd Edition)
Book Title
Introduction to Futures and Options Markets
Prime Eligible?
-
Our Top Value Pick
All About Derivatives Second Edition (All About Series)
Book Title
All About Derivatives
Prime Eligible?
-

Last update: 2021-03-07

When it comes to choosing the best book possible on derivatives, you should look at Options, Futures, and Other Derivatives, which will give you a deep dive into the subject and what it really means for you if you’re hoping to get into the field. If you want something out of our runner up category, Introduction to Futures and Options Markets makes it easy for you to understand what’s going on and how the market really works without assuming any level of knowledge or foundation in the subject. Finally, our value pick is All About Derivatives, which will give you an introductory look and help you figure out more about the world of derivatives as it applies to the world at large.

Professor Conquer
Professor Conquer

Professor Conquer started Conquer Your Exam in 2018 to help students feel more confident and better prepared for their tough tests. Prof excelled in high school, graduating top of his class and receiving admissions into several Ivy League and top 15 schools. He has helped many students through the years tutoring and mentoring K-12, consulting seniors through the college admissions process, and writing extensive how-to guides for school.

If you found this helpful, help us out by sharing this post!

Share on facebook
Facebook
Share on twitter
Twitter
Share on reddit
Reddit
Share on pinterest
Pinterest

Readers of this post also read...