Derivatives are promissory instruments that embrace rather than tame uncertainty

Evidence

The derivative is in essence a promissory instrument—a contract that is based on promises about the future, capturing a conscious anticipation of the latter’s unpredictability and of nonquantifiable unknowns. As such, the derivative foregrounds rather than averts life’s radical contingencies—or, according to Elie Ayache’s (2010) well-known account, it breaks out of the prison of probabilistic thinking and enters into the wilderness of contingency. — Aris Komporozos-Athanasiou, Speculative Communities, 61

Categorization

• DEFINE: Defines the derivative as a promissory contract that foregrounds radical contingency rather than hedging it away.
• XREF: Connects to the established ‘homo speculans’ thesis: the derivative as model for a subject who embraces volatility. — connects to: A derivative is a time-bounded bet, not a property claim — Mark Blyth, Austerity: The History of a Dangerous…, 87; Tech platforms seed uncertainty and profit from it, like derivatives — Aris Komporozos-Athanasiou, Speculative Communities: Living with…, 297; Derivatives inverted from insurance into engines that increase volatility exposure. — Aris Komporozos-Athanasiou, Speculative Communities: Living with…, 91 (+1 more)