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Interest Rate Derivatives are financial instruments whose value is derived from the movement of interest rates. These derivatives include products such as interest rate swaps, forward rate agreements, and interest rate options. Traders and investors use interest rate derivatives to manage or speculate on changes in interest rates, which can impact the value of fixed income securities, loans, and other financial instruments. Hedging against interest rate risk and taking advantage of interest rate movements are common uses of interest rate derivatives in financial markets.