Derivatives, disliked by billionaire Warren Buffett, is gaining momentum in M'sia

Volume rises: Trading volume in palm oil futures increased 44.6 year-on-year to 2.27 million contracts during the first nine months of 2015.

PETALING JAYA: Legendary billionaire investor Warren Buffett is no fan of it – and he makes no secret of his displeasure towards the complicated world of derivatives by calling them the weapons of mass destruction.

But risky as they may be, and regardless of how one perceives these instruments, it is undeniable that derivatives have enabled many investors to hedge their positions and protect their portfolios in an increasingly volatile and uncertain market environment.