The collapse of Barings Bank is the latest in a long line of financial disasters which have been blamed on derivatives. Promoters of these instruments argue that they provide a useful service, helping to manage risk in an increasingly volatile market. Misuse has occurred through a combination of greed, a lack of understanding of their unique risk and the failure of management to control those who have to deal in them. This guide explains in simple, non-technical terms the benefits and risks of derivatives. Through extensive discussion of recent high-profile losses, it demonstrates how derivatives have been misused and shares proven strategies for their successful management.