The Rogue Gambler: 7 Nick Leeson Trades That Triggered a Bank's Sudden Collapse

3. The Double-edged Sword of Derivatives

Derivatives, the financial instruments Leeson traded in, are complex and highly risky. They derive their value from underlying assets, such as stocks, commodities, or currencies. While they offer the potential for high returns, they also carry significant risks. Leeson's strategy involved betting on the future of the Japanese stock market. However, his predictions were wrong, and his losses began to mount.