Derivatives Market

A derivatives market is a financial market where contracts that derive their value from an underlying asset are traded. These contracts can include options, futures, forwards, and swaps. Participants in the derivatives market use these instruments to hedge against risk, speculate on price movements, and manage their investment portfolios. Trading in the derivatives market can be done on organized exchanges or over-the-counter. It is a key component of the global financial system, providing liquidity and risk management tools for investors and businesses.




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